Last updated: July 1st, 2018
We have already discussed about the benefits of having a life insurance and who needs a life insurance. Although life insurance is an essential item in any financial plan, not everyone needs it. Sadly, in many cases, life insurances are sold rather than bought. Many insurance agents, masquerading as advisers, mis-sell life insurance products to gullible customers. To protect ourselves from this unethical practice, let’s have a look at who does not need a life insurance.
1. You do not have an active income.
This is as simple as it gets. If you do not earn actively, you do not need life insurance. Don’t even think about it. It’s a no-brainer.
2. You do not have dependents.
You have grown old, are on the verge of retirement; your children have grown up and can take care of themselves; you don’t have any financial liabilities, your spouse does not depend on you financially; OR you are single and don’t have a family and you intend to remain that way all your life; well, then you don’t need life insurance.
Probably the only exception to this would be young single people who plan to start a family someday or the other.
3. You have enough money to take care of your and your dependents’ financial needs.
Unless you have a huge inheritance, this is really difficult to achieve, especially if you belong to salaried class. However, it can be done, mostly through multiple income streams and smart investment decisions. So if you have really built up your financial war chest that can take care of all your future financial needs, you don’t need life insurance.
If you fall into any of these categories, you do not need life insurance. Don’t waste your money in a life insurance product even if your adviser coaxes you with the best of offers. You would be better off investing your money in other, better options.
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