Some people are uncertain whether or not they should take out a life insurance policy. They may wonder whether the expense of paying premiums on such a policy are genuinely worth the benefits – benefits which will only appear after the policy holder dies.
The ones who profit from life insurance are people dependent on the policy holder. Therefore the question of whether or not to take out life insurance largely boils down to questions involving these dependents or beneficiaries and how this relates to various situational factors concerning the policy holder. With this in mind the following are some points to consider when trying to decide whether or not to take out a life insurance policy:
Age of Dependents
Clearly the age of people who are dependent on the insured individual is a primary consideration when trying to decide whether to take out life insurance or not. Many times these dependents are children and spouses of the insured and the latter is responsible either wholly or in part for their support. So if you’re trying to determine whether you should take out a life insurance policy, consider the likely range of age of your children, spouse, and/or others dependent on you when you die. Though often they will be adults, accidental death can happen any time. Thus the best bet is to base decision making on the current situation and few years hence.
Work/Professional Situation of Dependents
Another large factor here concerns how dependents are employed. Obviously children are not employed at all. Spouses and other dependents may be. In deciding whether or not to take out life insurance, factor in the current or likely income situation of those dependent on you. obviously it is most essential to take out life insurance if the adult dependents are without employment or education, or it is uncertain what their empoyability or income level would be after you die.
If, on the other hand, you have a spouse, say, with a well paid career and good career prospects, and he or she is equally responsible for children or other dependents, life insurance may not be as vital. you still may wish to consider it, however.
Income/Employment of Policy Holder
As a policy holder your income is also important of course. You can hardly be expected to pay monthly life insurance premiums if your income dosn’t allow you to afford that. Carefully budget and assess your finances before deciding to take out a life insurance policy. Term life insurance offers cheaper premiums than permanent life insurance policies. However, permanent life insurance policies are more flexible as regard late premiums and changes in your financial situation. So these are factors you can consider in making a decision as well.
One other reason some people take out life insurance policies is so policy holders can donate money to charitable organizations upon their death. If you are involved with some sort of charity, using a life insurance company as a way to insure your money ends up in the right hands after your death can be a good idea.
These are some items you can factor into your consideration of whether to take out a life insurance policy. This is definitely a decision to make only after due thought and an assessment of all the factors involved. life insurance is not mandatory – it’s something that can help to insure the well being of those dependent on an individual if various situational factors warrant it.
Fran is an Life Insurance Specialist from Sydney, Australia. She says that there are many affordable life insurance options available to suit the needs of individuals and families and recommends speaking to a professional for advice.