Figuring out how much insurance is enough can be tricky. It can sometimes seem like you are pouring money into something that you may not get a return. However, in those rare moments where you will need your insurance, it’s important to have enough coverage.
Without suitable coverage, you could take a huge financial hit. One of the most important types of coverage is life insurance. We hope this never happens to anyone, but in the unlikely occurrence of sudden death, you want your family members to feel supported. If there are people who depend on you and your income, however, it is one of those unpleasant things that you have to consider.
Buying life insurance doesn’t always make sense for everyone. If you have no dependents and enough assets to cover your debts and the cost of dying (funeral, estate lawyer’s fees, etc.), then insurance is may be an unnecessary cost for you.
If you do have dependents and you have enough assets to provide for them after your death (investments, trusts, etc.), again, you may not need life insurance.
However, if you have dependents (especially if you are the primary provider) or significant debts that outweigh your assets, then you likely will need insurance to ensure that your dependents are looked after if something happens to you.
Insurance is cheaper when you are young, but it is no easier to qualify for. The simple fact is that insurance companies will want higher premiums to cover the odds on older people – it is a very rare that an insurance company will refuse coverage to someone who is willing to pay the premiums for their risk category.
That said, get insurance if you need it and when you need it. Do not get insurance because you are scared of not qualifying later in life. If you choose to buy insurance through an agent, decide on what you’ll need beforehand to avoid getting stuck with inadequate coverage or expensive coverage that you don’t need. As with investing, educating yourself is essential to making the right choice.
Everyone’s circumstances are different, so it’s worthwhile speaking to someone about your specific needs.
We always welcome a chat, so call us on 07 5699 8124 today.