why we need to buy insurance


Many people don’t like insurance and feel it as an additional expenditure but don’t see it as protection.  They stay adamant on their stand for not having insurance and have their own reasons, which may sound rational on first look but are proven wrong always.  Making delay makes the insurance even costlier. So, let us go over the reasons postured for not buying insurance and see if we can come to a favorable conclusion.

No dependents…

The main aim of insurance is provide assurance to the survivors but some feel that it is waste if there are no dependents.   But experts say though you may have any survivors, you may have to face expenses after death.  For example, you may have some loans and debts to clear and you die without clearing them and the whole burden has to be borne by the guarantor.  Since it is not right to put that person into trouble, a term policy is needed.  Though you may have no dependents at present, it is better to take one keeping the future in mind.

I am retired…

Most think that retirees don’t need insurance as it will be another burden with already lesser income.  But, there is importance of insurance even in this age.

If you are pensioner, the pension gets ceased after your death pushing your family into financial troubles.  So, a term policy comes in aid here.   It is always beneficial to buy a term policy at a young age and continue it to the retirement age.  This provides a lump sum to the family at a lower premium.

I stay at home…what is the need for insurance?

In most families, the life partner stays at home and does house chores.  Their services are invaluable and cannot be bought with money.  If you lose them unfortunately, it will be an uphill task to care for the minors and others and will need a lot of finances.  So, at least an alternative financially should be sought after.  The life insurance is apt here, though we may not put value on our life partner but at least we can take a policy on their name.

I have policy given by my company…

Employees have a group health policy given by the employer where the family is also covered.  But insurance advisors say that this is not sufficient for the needs and in some cases if employment is lost, the coverage is also gone and there arises the need to take an individual health policy.

It is always better to buy a health policy when healthy.  So that the premium is lower and can avoid claims for preexisting diseases as the waiting period can be done with.

So, stop searching for reasons not to buy insurance and take the best policy that suits you.  Don’t feel it as an expenditure but see it as a protection.  Always monitor your insurance and add if need be.