Who should take life insurance

Now that you have a fair idea about the different types of policies, let’s look at how you can determine who in your family should be insured and for what amount. Need for life insurance depends on factors such as age, income, number of dependents, expectations and so on.

• Let’s take the case of an individual who is 25 years old, single and has no dependents. No one will be affected financially as a result of his untimely death. So, he may not really need life insurance at this stage. However, it still makes sense to go for it because he may require it later in life. It would also be advantageous to go for it now because he’ll need to pay a lower premium since he’s still young.
• An individual, who has dependents that will be affected financially due to his death, should definitely consider taking life insurance.
• The amount of cover that one opts for should be sufficient to support one’s dependents in the event of one’s death. So the higher the number of dependents, the greater should be the cover. One also needs to take into account the lifestyle their family is used to and then figure out the amount of money that would be required to sustain that lifestyle.

To conclude, you should take an insurance policy for every earning member of the family. In a household, if both the husband and wife work, it makes sense to take insurance for both. You don’t need to get insurance cover for your children since you don’t really depend on them financially.