Life insurance is an insurance product in which the owner has a duty to pay policy premiums, either monthly or yearly, with the right form of sum assured in the final insurance policy owner dies or when.
Sum assured may be given to the beneficiary by the terms in this agreement. With such a system, many are interested in life insurance because of financial certainty in the future. In addition, the existence of this insurance provides many benefits, some of which are:
- Provide financial protection at a time when the backbone of the family no
- Provide protection for the costs of care and treatment
- Taught financial discipline settings
However, life insurance is also not a product protection you should have. Your needs for life insurance can be tailored to the ability as well as your current financial condition. Although life insurance is very important, not to say you definitely need it. Roughly what are the criteria that you don’t need life insurance? The following are 6 signs where you don’t need life insurance:
1. You have sufficient Liquid Assets
An asset will be considered liquid if it can be easily and quickly converted into cash. Some of these assets, for example, precious metals, bonds, mutual funds, foreign exchange and others. Why do you need sufficient liquid assets?
The reason is so that you can use those assets to earn money in an emergency. If someone only has assets in the form of property and any time he needs cash for medical expenses, so he was forced to sell those properties at low prices in order to quickly get the money.
Certainly it would be detrimental to someone financially. That’s why the protective liquid assets required as you’re financial. To that end, if you don’t have insurance, you should have a portfolio of investments with a combination of liquid and non-liquid assets.
2. You have adequate Assets Value
Back on the main function of life insurance to protect your family financially in the event of an accident which caused the head of the family or the backbone of the family died. If you already have sufficient assets, then it can be said that when you die, your family financially secure.
Assets here can be an investment in property, shares, deposits, or even cash. Adequate or not should depend on the needs of your family. Ideally, the assets you have are able to substantiate the cost your family life for 1 year. With sufficient assets you don’t need life insurance. However, you should prepare a letter of legal inheritance by law so that your assets divided by average for a legitimate heir.
3. You no longer have a Mortgage
Of course you do not want to bequeath to the debt when you no. Conditions that do not require you to have insurance are a condition where you no longer have the debt. The debt here ranges from mortgage home loan, credit card, credit vehicles to other debt.
If you are still not free from debt, then you should have a life insurance product to protect your family from financial loss. Conversely, if you have been free from the burden of repayments then you no longer need life insurance.
4. You do not have any dependent children
Not having child dependents does not mean you are free of responsibility for your child’s needs. With no child dependents, this shows that your child has grown up and is independent.
One of the biggest costs for children is the cost of education. If the child has finished their education, of course they can help the family financially by working. In addition, if something happens to you, children can stay alive with the income they get.
On the other hand, most life insurance products only provide dependents to the child with a maximum age of 23 years. Then, you can not obtain the maximum benefits from your life insurance if You are nearing the age.
If your child is already big, then you do not need to have life insurance. If you want to get the maximum benefits from life insurance, then we recommend that you start from the age of the child is still premature as 7-10 of the year, and a period of insurance for 15 years.
5. You have a guarantee of Retirement from work
One of the advantages of working as an employee of an Office is a guarantee provided by the workplace, one of them a guarantee of retirement. Guarantee of retirement can also provide protection like life insurance. You can bequeath the sum assured of the guarantees retirement to your children. In addition, you need never worry about retirement. With the guarantee of retirement, you no longer need life insurance.
6. You have a business or enterprise that can be lowered
In order to bequeath a business or business is to replace the income that afford you get. As well as the existence of assets, owning a business means giving your family a way to earn money. This way shows that the money is not acceptable with instant. Of course, profits in the future depend on the management of the business conducted by your heirs.
To simplify the process of granting business, you have to prepare for the transfer of ownership of the business as well as the conditions required in the eyes of the law to avoid disputes.
What about private or government employees? Although it does not have a business, it does not mean that private employees or government must have life insurance. As long as the above points have been met and family needs can be fulfilled with the assets that you already have, then you don’t need life insurance.
Financial and insurance product has fundamental purpose to protect the owner. Financial protection is the primary purpose of the product. Protect yourself with or without life insurance. If you decide to not have insurance, you should have your financial protection by other means, such as by asset ownership, investment and more. Think well do you already have the other way or not.