Take charge of your money

Who needs Life Insurance?

Who needs life insurance?

Life insurance is one of those things that most people feel they need, and Financial Advisors and telemarketers love selling it as it’s probably quite an easy sell. A small monthly cost which when you die will turn into a nice large lump sum payment to your family left behind. It’s one of those things which can really play with your emotions and seems like something that everybody definitely needs.

Listen to me discuss this on Cape Talk Radio

But, does everyone need life insurance?

Why would you need life insurance?

Every body has different life circumstances, dependants and outlook on life so there is no “one solution fits all” kind of answer. The main reasons why you would need life insurance would be to cover large debts that you have when you die, as well as to look after loved ones you’re leaving behind. But if you don’t have any debts or you have no dependants then what’s the point?

It’s a personal decision though as family situations are different.

We’ll look at different categories of people who probably don’t need life insurance as well as those who do. The final decision should however be taken with proper consideration of all circumstances and sometimes a trusted financial advisor can assist you to think about things you may not have.

If you’re unsure of what to do and need someone to speak to, contact me and I’ll put you in touch with my personal advisor who I really trust. (Obviously only applicable if you live in South Africa).

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Your details will only be passed to my financial advisor and no-one else!

Who really doesn’t need life insurance?

Have a look through this list and see if any of these describe you. If so, you possibly don’t need life insurance. But, read the next list too as there may be something that you’re not thinking about right now. This is quite “broad” so by no means definitive.

Who really does need life insurance?

Now think about the opposites of everything listed above.

If this is you, then you probably need life insurance!

But how much do you need?

This is an ever changing figure but you can reassess it at any time that you have a major life event such as a birth of a child, marriage, purchasing a property or ageing parents becoming reliant on you for daily needs. You can’t change an existing policy as it is a contract, but you can take out an additional one if needed.

Think about the following; if you die now:

Conclusion

There really is no quick and easy answer and you should probably have a chat to a trusted financial advisor. Don’t however take everything they say as the gospel truth though. Question things and be sure to understand what advice they’re giving you and why. This is your financial future so you need to be in charge!

It is wise to have life insurance, but you’ll be wasting your money if you have too much. Take the time to plan properly and you’ll find that you can sleep just a little better at night with one less worry. 🙂

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