Finally! A most happy posting to be made. We based our site on Life Insurance and its importance, and today lets make a most dramatic turn to examine when exactly do we NOT need to bother about all that cover, those premiums, and responsibilities in general.
However lets begin by agreeing that Life Insurance IS important. For you, for your family. Its usually bought with the intention that you might not outlive it (which is the whole point). But more so than ever, more people need not worry about outliving their policies because they actually outlive the need for their policies.
We do not need insurance cover throughout our lives, just like we do not need home insurance or auto insurance throughout our lifespan. When we fully pay up our mortgages or we decide not to own a car, we do not need the respective insurances. Likewise for Life Insurance. Here are some instances when its no longer advisable to maintain or buy any more policies.
- You (and/or your spouse) have enough wealth / passive income
Say you have fully paid up your mortgage (or mortgages), and have sufficient passive income streams from either your business or sidelines or investments – its actually pointless to have additional cover since you can take care of yourself (without working).
2. When your children are grown up and self sufficient adults
Most of our working lives will be spent on making sure that our children have enough to see themselves through as a working, fully functioning adult that can take care of themselves financially. Beyond which, there is really no further need to take up additional cover (referring to term or whole life plans here).
3. When your retirement needs are fully taken care of
Assuming you save and invest diligently, once you have taken care of your retirement fund, any additional cover that you take on would be a waste. The whole idea of insurance is to give you financial options when you need them the most, but once you have already given yourself enough options, insurance then becomes redundant.
One of the main ironies of insurance is that its essential yet we hope that we never ever get to use it. Its primary purpose is not to provide speculative or investment income, but rather to take care of our families and provide an income if we are no longer around. So once you are in a happy place where your financial obligations have been taken care, it will also be the day we relinquish our insurance needs.
Till then, stay safe and stay covered.
Do you know any other instances where we actually do not need insurance? Let us know in the comments below!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.