Do I Really Need Insurance?





Insurance is not cheap, and it can be tempting to go without coverage, especially if you never get sick. With the expensive monthly cost and out-of-pocket expenses, you may be wondering how much you really need coverage.





Whether you are saving for retirement or a home, life’s unexpected problems can quickly derail all your hard work. That’s why having the right kind and amount of insurance is an important piece in any financial plan.

Some insurance is mandatory, like automobile coverage, and more recently, health policies. Others are just as important because they mitigate the financial risks should something happen to you.





Insurance is a mechanism for protecting people against damage, losses, injuries, and costs associated with unforeseen events. Insurance is generally defined as a method of spreading risk of loss through a pooling mechanism. Insurance provides protection against a predictable event that arises unexpectedly. Those who are likely to suffer from such loss buy insurance by paying premiums, which are used to pay losses that may arise.

More than any other kind of coverage, life insurance has a reputation as the product of snake oil salesmen. That’s partially deserved, because of how many irresponsible agents try to push insurance on everyone. But the truth is that life insurance can be not only useful, but important for some people.





Lot of woman put off buying insurance for several reasons, if they even understand it. Take a look at this sentences. Do any of them sound like you?

It’s too expensive.

In the ever-burgeoning budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you? Here’s more information about the true cost of life insurance.

I have life insurance through my job

Lot of people are offered life insurance as part of their employee benefit coverage, sometimes, it’s the first time they encounter life insurance and have no idea that a huge value policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money, until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t move on with you.





You feel strong and healthy.

You eat and stay active, Friends and family admires how grounded and centered you are. You passed the last physical with flying colors. That’s cool. But you’re neither

indestructible nor

immortal, nor It’s not even that something could happen to you, though it could, so much as when you’re at your healthiest and strongest, there’s no better time to get a insurance policy to protect your loved ones. If you fall seriously sick or significant injury later, it will make it tougher to get that kind of policy, if any at all.





There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your eventually turn into your loved ones, if only.





I don’t have children.

Children are an important reason why some people get insurance. But that’s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss, your husband or live-in partner, even your parents, a life insurance policy goes a long way in making sure everyone’s still good even if something happens to you.





You only really need life insurance if someone is relying on your income. If you own a home with your partner of life, or have kids, you should seriously consider getting it.





Buy insurance only if you need to replace your income

Life insurance, is really for couples or family looking to replace their income when they die, so their partner or dependents aren’t stranded. That’s why singles with no children don’t need a life insurance policy, because no one is relying on their income.

Most agents do recommend buying life insurance if you share a mortgage with someone. It can be extremely difficult to sell a house quickly if you need the money, and a life insurance policy can help your family make mortgage payments if they decide to stay in the home. If you own your home outright and don’t have children, then you likely don’t need a policy.

Remember, having life insurance is not just about having a cushy windfall in case your loved one passes away. It’s about protecting yourself and assets, so you don’t have to drastically change your lifestyle if something strikes.





Types of Insurance You Probably Don't Need

While you want to ensure that you're adequately protected, there are a lot of insurance policies that are unnecessary for you. Purchasing the wrong insurance, or paying too much on insurance can do more harm than good. Types of insurance you may not need include mortgage life insurance, sometimes called credit life insurance; cancer or specific disease insurance; and travel or flight insurance. In the case of travel insurance, for example, these may be included as part of your credit card's travel benefits. Before buying these types of insurance, think carefully about the return on investment you may get.





Which Type of Life Insurance Is Right for You?

Once you've decided how much life insurance you need, the thing to consider is what type of life insurance is best. You may choose a term life policy, which covers you for a set term and tends to have the lowest premiums of any life insurance option.

You may prefer permanent coverage in the form of whole life, variable or universal life coverage. While these policies may carry higher premiums, they offer the benefit of lifetime coverage with the potential to build cash value. It's important to weigh cons and pros of both and compare those to your life insurance needs.





Health insurance premiums may seem like a pricey part of your budget. But a lack of insurance can cost you far more in the long run.Not having health insurance can have you scrambling to pay large medical bills in the event of an injury or unexpected health crisis. If you’re an adrenaline junkie, health insurance is important in the event you experience an accident pursuing a heart-pounding passion. You truly can’t predict medical emergencies, and medical emergencies have the potential to bankrupt you if you don’t have insurance.If you don’t have insurance, you’ll also have to pay out-of-pocket for all prescriptions, screenings, and preventive health services. These are the services that keep you healthy and detect potential health issues that could cause problems—both physically and financially—later on.In so many words, yes. Absolutely yes. No matter how much or how little money you have, the answer is always the same. Don't think that it'll save you money by not spending. It could cost you without it.Imagine that you’ve finally taken control of your finances and build up that $1,000 emergency fund. Only to have you or your husband fall suddenly ill and need serious medical care or surgery.