Life insurance: do you really need it? The two situations to be evaluated


7 November 2019, by Alessandra Caparello

THE'life insurance it is a very effective financial protection to ensure that one's family and in general those we have dependents are financially secure in the event of death. Certainly thinking about death is an ugly but inevitable thought. For this reason, especially for those who have a family, planning every scenario that could occur, even the worst, is absolutely necessary.

The question that often arises is whether one really needs life insurance. As Eric Rosenberg writes about Business Insider, if you are the main source of income or assistance in your family, it is imperative to consider life insurance. The best type of life insurance for most people in general is lTerm life insurance which offers in the event of death a very large indemnity with a low monthly payment. But then those who are not married and have no children should not think about life insurance policy? The answer in this case is negative given that if you intend to start a family, taking out a life insurance policy is a good idea since the cost of the policy rises with age.

The two situations for which there is no need for a life insurance policy

Ideally, there are only two situations in which you might not need life insurance. The first is if you really plan to have no one at your expense. And this doesn't just mean not having children. Those who have elderly parents must think about the possibility of caring for them in their own home, which means that they will become dependent. If you are the only one of the two spouses you earn, the partner will also be a dependent person. Therefore it is necessary to properly evaluate your personal situation and make sure that no one is dependent on us in the future for not needing to take out a life insurance policy.

The second scenario where you might consider not taking out insurance is if you have enough savings and investments to make yourself secure. This means that you must have accumulated a lot of money to ensure that your family is well, even if there is no longer any source of income. But even in this case prudence is a must. Given the increase in life expectancy it is likely that we will live even up to ninety years so that medical expenses will be necessary, which in most cases are quite substantial considering low pensions. Which means tapping into one's savings.

Then to the question of whether you really need life insurance, iIn case of doubt, the answer is usually yes.

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