Pure protection term plans are the best bet when it comes to life insurance. They offer adequate protection for a very modest price. For example, a 30-year-old non-smoking woman will pay around $1,000 per month for a term plan that covers her until she reaches the age of 60. This is less expensive than a two-person supper outing. When purchased even earlier, at the age of 26, the premium will be 20% less. However, reduced premiums should not be used as an excuse to purchase insurance early. When you need insurance and how much you need it depends on your current financial status, and there may be times when you don’t. life insurance at all. three reasons to not buy term insurance.
If you don’t have any dependents, you have no one to defend you in the event of an emergency. This could be the case for young people who aren’t married and come from financially secure families. “Any insurance decision should be based on the severity of the financial burden and the family’s ability to endure it,” said Mahavir Chopra, Beshak’s co-founder and CEO.
It’s also a good idea not to leave your debts to your heirs in the event of your death. Even if you don’t have any dependents but are paying off a loan, it’s a good idea to obtain term insurance equal to the loan amount.
Have a lot of assets: If you have a lot of assets and little or no liabilities, you can avoid buying life insurance. However, keep in mind that this computation must be done properly. After deducting all loans, assets and accumulated wealth should be able to replace the only breadwinner’s salary. Additionally, if you have long-term financial goals in mind, such as paying for your children’s college or your spouse’s retirement, those assets should be adequate to cover those expenses.