Life insurance is primarily for the ones who have financially dependent people. If there are no financially dependent people in your life, then you may not need life insurance. Because it’s very likely that you are dependent on someone else for financial support and already is a beneficiary for them. However, there are some scenarios when you might want to buy life insurance.

Here are some scenarios in which financially dependent people may need insurance: 

Student debt

If you have left your job but are still paying your student debt from your savings, then it's a good idea to have life insurance for yourself. In the event of any unforeseen circumstance, your guarantors will have to pay your debt. Hence, to safeguard them you should sign up for insurance policy until your student debt is completely paid back.

Family Wealth

Got some wealth as your family legacy? Why not invest in insurance policies? Insurance policies give you tax exemption on maturity returns giving you better returns compared to other important insurance policies out there. Hence, your wealth has a safe place in insurance policies. In case, you have wealth that you want to transfer to other people in your family; you can do so by nominating them as beneficiaries and buying a life insurance policy.

To cover some Medicare costs

Life insurance policies offer some add-on riders such as cover against critical medical illnesses or permanent or partial disability. Hence, your life insurance will partly act as your health insurance. Pick between health insurance and life insurance depending on whichever is profitable to you.

When to not buy an insurance policy?

Completely dependent

If you are completely dependent on someone for all your financial needs, you don't need an insurance policy; this is also applicable when you don’t have any kind of monetary assets in your name. As someone else will be paying for your expenses, your insurance premiums will only add up as an additional cost to the person who is financially supporting you. You will be the beneficiary for someone who has a life insurance policy in their name.

Unemployed people mostly do not buy a life insurance policy. Most of them consider buying a pure health insurance policy that takes care of the medical bills. However, if you are not earning yet in any of the above situations, then you must consider getting a life insurance policy.

Learn more about different Online Term Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.




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