People who are becoming more aware about the need to manage their finances have started to think if they really need a life insurance. Especially when most personal finance gurus mention its importance in an investor’s portfolio.
How about you? Have you asked yourself or an insurance agent/financial advisor if you really need to buy a life insurance?
Let’s see where you belong among the following categories.
Are You Married?
You definitely need an insurance if you have tied the knot. Most especially if you have kids. We do not want to saddle our family members with all the costs and estate taxes when we leave this happy life.
However, don’t be too dramatic by keeping your insurance package a secret. You need to tell your spouse or your children that you are paying monthly or annual insurance premiums.
It’s also very, very important that you inform them about the current status of your monthly payments and where you are keeping the policy and other related documents (receipts, full payment certification, checklist of claims requirements, etc.).
Inform your spouse or beneficiary who you agent is to make things much easier for them.
Do You Support Relatives or an Advocacy That You Support Financially?
If you are single and have no dependents (no parents, family, siblings, kids, no plans to marry), then I don’t see any reason why you need to get a life insurance. However, make sure that you are saving and investing for your future knock-on-wood moment.
In this case, you may introduce your bestfriend to your lawyer friend that you hired (or will hire) to settle your “final investment” in this planet. Swerte ng bestfriend at ng lawyer mo.
But even if you are single but you support relatives, however close or distant they are, then you definitely need to get a life insurance. But while doing that, seek other opportunities for them to help themselves earn money on their own.
The same goes if you are currently supporting a charitable institution, or sending an orphan to school, or you committed yourself to give monthly donations to an advocacy that you really love, then perhaps you can afford to get one relatively cheap term life insurance. Who knows, these people may even form another foundation named after you.
Are You Rich?
Seriously, if you relatively have so many money to cover for your family’s future financial needs upon your demise, then there’s no need for you to get a life insurance. Unless you are enjoying your being a philanthropist (to the wrong party).
If you are really rich, then what you need is a tax lawyer/accountant and an estate planner. Call me.
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P.S. 1. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at firstname.lastname@example.org if you have any questions. Click here to join!
P.S. 2. For those who based in Manila, you may attend our FREE Biblical finance seminar on July 27, 2013 at Coffee Bean & Tea Leaf (a coffee shop), G/F Four Season Bldg, Tordesillas cor Toledo St, in Salcedo Village in Makati City. There are limited slots remaining so register here now!
Photo credit: Alan Cleaver