28-year-old Supriya Menon recently got her first job. Now he has started investing and has also bought a health insurance policy to deal with any medical emergency. However, she is not able to decide whether she should buy a term insurance policy or not. Being young, he has no liability and dependents. In such a situation, there is no point in taking a term insurance plan for Supriya. Which gives a fixed sum to the family together on the death of the insured. However, life insurance is a strong part of financial planning. But still, here are some examples of people who might consider giving up on term insurance.
When the earning member of a family dies early, the whole family gets a shock. Hence, it is important to buy a life insurance policy. Because it takes care of the financial condition of your family when you are not around, but what if the person is nearing retirement or has already retired then there is no financial need of the family. In this type of case it makes sense to skip life insurance as your children are independent and you have already paid during your working life.
A young person like Supriya may not need to buy life insurance unless she has any dependents. This is the time when people do not have responsibilities like home and car loans. So young people who have just started working. They can ignore life insurance. But after Supriya’s marriage and children, she will need to reconsider this decision. But let us tell you that as age increases. Premium rates also become expensive. Hence, buying at a later stage can make the policy costly.
comfortable net worth
You also need to consider your net worth before deciding on the need for life insurance. If you already have enough net worth where you can easily meet your liabilities like loans and children’s education, then you do not need life insurance. Life insurance is for those who have the risk of leaving their family behind with no financial liabilities.
So, if you are concerned with any of the things mentioned above then you can consider reviewing your decision to buy a life insurance plan.