Because life insurance is for those who depend on the insured, their needs must be considered at the time coverage is put in place. As we go through life, needs change, which is why insurance agents suggest people stay current with all their insurance needs.
When a couple gets married, their prime concerns are one another. If they both work, they generally have a lifestyle that depends on two incomes, so if either were to die, there would be a financial burden, making it best if both have a life insurance policy. When children come along, it is even more important to keep adequate life insurance policies in force.
Investing and Income
Successful business people generally talk with investment professionals to determine how best to preserve and grow income, but at the same time, it is still important to be prepared to maintain life insurance for unexpected events.
Term life insurance is often more attractive because it allows for more monies to be placed in safe investments and applied toward retirement than paid out for insurance premiums.
Later in life, investments might cover the financial hardship should death claim the major wage earner, lessening the need for a life insurance policy. A term policy that is set for 30 years might be all that is needed for an individual, but if profits and investments don’t go as well as expected, the term policy can be converted to whole life should that prove the better way to proceed.
When is Life Insurance Unnecessary?
There is no clear answer about when a person doesn’t need life insurance coverage. A person who has invested wisely and owns their own home is less in need of life insurance than other people are.
If the children have their own lives and supportive incomes, they are less likely to depend on the parents for ongoing financial help. Under the right circumstances, a life insurance policy might not be as important to some as it is to others.
On the other hand, a policy that takes little to maintain and offers to pay handsomely upon the death of the insured is nothing to be considered lightly. Few people ever reach a status where money is of no consequence, and beneficiaries may find economic problems down the road that can be averted because of policy benefits.
There are few times in people’s lives when a life insurance policy doesn’t help out their loved ones in the event of their death. Weighing value versus the expense is the best way to look at life insurance policies and who needs them.