Do you have a life insurance policy? If not, how do you know you need one? Buying one more insurance policy seems like an expensive hassle, especially when it addresses an uncomfortably dark topic for many. Today, we’ll take a quick look at who it is that really needs to purchase life insurance now, and what kind of policy they may best benefit from.
Should You Buy Life Insurance?
There are two factors that influence if you’re the best candidate for life insurance: your financial role in your home, and if you have any children. No children? If you’re married or cohabitate with someone who earns less than you do, consider how they would move on if you died unexpectedly.
Would they have to move? If you own the home, would the sale of it benefit them in any way? Chances are, you don’t want your spouse to find themselves destitute on top of grief-stricken. Life insurance mitigates some of the trauma of such a sweeping change.
Those with young children especially need life insurance. Life insurance is what can help your kids continue their education and successfully reach some of the most important milestones in their young lives.
What about if you have grown children, or a partner who is financially stable on their own? If your kids are adults who can take care of themselves, and your spouse has adequate assets and income, you might not need that policy.
However, if you consider that there may be medical debt associated with your death, as well as expensive funeral arrangements, you should think about getting one anyway.
Picking a Policy That Pays
What’s your life worth to you? No, really, could you put a dollar amount on it? Believe it or not, your insurance company will. However, they don’t use the same metrics we do to determine a person’s worth. They’ll consider your age, income, retirement, and assets and liabilities.
You can try the human life value calculator now to see how you measure up. The number you get isn’t your true net worth; it’s simply the amount an insurance company estimates would be appropriate to keep your affairs in order after death.
You will also have to make a choice between term and whole life insurance. In general, term life insurance is most suited to the average person. Term life insurance is more affordable than whole, and doesn’t always require a health exam.
With whole, people build value they can borrow against, and is best for those who are more involved in planning their estate.
Finally, you might wonder where to buy your life insurance. Now, there’s little need to visit a brick-and-mortar office. It’s easy to buy term life insurance online – even from your smartphone.
What would it cost your loved ones if you passed tomorrow? What kind of debt would you be leaving behind, and how would your funeral be paid for? More importantly, what would life look like for your family a year or more down the road? Answering these questions makes it clear that life insurance is the best way to ensure your family doesn’t lose everything when they lose you.
About AEGON Life
Launched in July 2008 with pan-India operations, AEGON Life Insurance Company Limited has a vision to be the most recommended new age life insurance company. As a joint venture between AEGON – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, AEGON Life Insurance adopts the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions, and to prioritize customer’s needs. Our product portfolio includes term life insurance plan, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.
