Do I Really Need Life Insurance?

By Isla Campell

Life insurance can be quite a complicated product, especially if it is attached to another product like a mortgage or loan. However, it can also be fundamental to the economic survival of a family in the sad event that the main breadwinner passes away.

Those who have dependents; a spouse and/or children, for example, that rely on a regular income to survive should seriously consider life insurance. Should the main provider die and they have not made provisions, then their family is left not only to cope with the grief of death but also with the worry of not being able to cope financially. Couples should also look into life insurance, because it is likely that their current lifestyle; the house they live in, the cars they drive etc are dependent on two incomes, and if something were to happen to either one, the other may not be able to keep up repayments on their mortgage or loans on one income alone.

Similarly, stay-at-home mums or dads should also be covered by life insurance because if they were to pass away, their other half would not only have to cope emotionally with the loss, but also somehow be both breadwinner and carer - an almost impossible task.

Life insurance is even more important for those with a mortgage and other debts. Many couples and families have life insurance policies tied to their mortgage so that should they die, the mortgage will be paid off and the person left behind will not have to worry about making the mortgage payments.

Those who are retired with grown up children and no mortgage to worry about often think that there is absolutely no need for life insurance. However, life insurance can be a good way of leaving some inheritance to grandchildren, as policies can be set up to pay out equally to all grandchildren, even those that are yet to be born!

And it is not just older people that often think life insurance is unnecessary; people who are young and healthy, living for the moment often wonder if there is any point in wasting money on life insurance. But it is exactly these people that should be thinking about life insurance because when you are fit and healthy, it is actually the best time to arrange a policy. Those who wait until they are actually ill either have to pay a very high premium, or, are refused altogether.

Life insurance is a morbid subject, but it does provide some peace of mind. Most policies include critical illness so that if the insured person were to develop a terminal illness, the insurance company will pay out a lump sum, helping the policy holder and their dependents cope with the costs involved in any treatment needed, and getting affairs in order. Others use the cash to fulfill any last minute dreams they want accomplish.

It is horrible to have to think about life insurance, but it is wise to have it in place so that those left behind are not burdened with financial worries as well as emotional ones, should the worst happen.

source: http://www.goarticles.com/cgi-bin/showa.cgi?C=971290