When should you buy life insurance – why buy life insurance coverage?
Let’s discuss on why and when to buy life insurance coverage. It is not possible for all of us to earn money in the entire life span. But we need money for our needs till the end of life. It is necessary to plan for money if we want our as well as our near and dear ones to have a smooth life. One important thing is that it is not even hard to plan for same.
Why do we need insurance? You must be earning nicely for your lively hood and might be saving money by investing it in FDs, share and all. But have you ever thought that all this investments are short termed. Have you ever thought that you might be earning for many years but will these years of income be sufficient for you to live safely and happily after retirement for around 25 years? Earlier people use to rely on their children after retirement but due to increasing nuclear families and inflations even this is getting difficult. Hence it is necessary to plan our life after retirement right now.
Have you secured your family from financial instability? Your greatest plan can fail too. Everyone should plan an accidental plan. You should give it a thought that no doubt you have invested and it will give returns too, but what will happen in times of sudden emergencies or urgency. Will you be able to support the family in times of needs with your current income? It is also necessary to think whether you have planned your kid’s entire education and marriage expenses too. Have you secured enough money that could be used fifteen years later for all the important needs including higher education and marriage? Life insurance comes at your rescue in all above mentioned situations.
To plan ones futures financial plan it is necessary to understand your financial conditions, whether you have a fixed income or your income varies. Do you save regularly or have an empty pocket at the end of the month. Do you have knowledge of equity and debt market and do you set your money at regular interval and have enough time for research and investigation?
With following common questions you can decide your financial needs easily:
What is your biggest expenditure? Buying home? Arranging money for kids’ education? Arranging money for their marriage? Arranging money for your old parent?
At what age are you planning your retirement?
Are you saving money for expenditure after retirement? To continue with your present lifestyle what money do you require?
Do you have enough money for accidental treatments?
You should think about these questions and according to answers you get, you should decide when and what type of life insurance plan you should opt to live happily ever after.
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