Who Doesn't Need Life Insurance?

Let's see if you really need one

We answered “How much life insurance do you need?” yesterday. Let’s find out if you really need one today.

You will be given an option to buy life insurance till the age of 70, 80, 85 or even for your entire life.

But do you really need insurance for such long periods?

Let’s find the answers in the following questions -

What is the objective of life insurance?

To cover the risk of your early death to support your dependents.

Who are your dependents?

Your kids, spouse (if not employed) and your parents for most of you.

Till what age would they be dependent on you?

Your kids would be dependent only till they are fully educated. Your spouse and your parents would still be dependent on you but you would have made adequate provision for everything till you retire.

Do you need life insurance if you have dependents but your net-worth is enough to support everyone for life?

Not really. What is the need to buy insurance if there is enough money to last a lifetime.

Suppose you bought insurance at the age of 25 when you had dependents but not enough money. You needed insurance at this age.

At the age of 45, your net-worth is enough to support your family in your absence. You should ideally not continue with your insurance. There is really no need. You have made enough.

Please do let me know if you think I missed anything or if any of your questions remained unaswered.

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