Home Finance 6 Scenarios When You May Need Life Insurance

6 Scenarios When You May Need Life Insurance

by pps-DUEditor

Is life insurance meant only for those who have dependents to support? Certainly not! There are many situations when having a life insurance policy can be helpful even if you don’t have any dependents. Let’s take a look at a few scenarios when buying a life insurance policy can be beneficial.

  • Young adults

If you are a young, single adult, you may want to buy a life insurance policy to cover your end-of-life expenses or to financially support an elderly relative.

  • Starting a family

If you are just starting a family, it’s best to immediately buy life insurance, with enough coverage to financially protect your dependents in case something unfortunate happens to you.

  • Working couples without children

Sometimes, although both partners may be employed, one tends to earn substantially more than the other. In such a case, it can be beneficial to buy a life insurance policy to financially protect the other partner.

  • People with debts

People who have a mortgage or debt should certainly purchase a life insurance policy that will cover their debt completely. Remember that if you happen to pass away, your dependents will need to pay your debt. If they are unable to make the payments, your home and assets may be lost.

  • People who have employer-sponsored life insurance

Although you may be covered by employer-sponsored life insurance, it’s important to also purchase life insurance for yourself. Any insurance policy offered by your employer will last only while you are employed in the same organization. So, if you lose your job, you won’t have life insurance anymore. And, purchasing a life insurance policy when you are older can be significantly more expensive.

  • Buying life insurance for children

Many people assume children don’t need life insurance since they don’t contribute financially to the family. However, purchasing life insurance for your children has many benefits. For one, it ensures future insurability, regardless of their health condition. Also, if you buy a policy with a cash value component, the amassed corpus can give them a head start in life.

So, if you thought you didn’t need life insurance, think again. Make sure to do your research and purchase a policy that suits your needs and budget.

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