Who all can skip buying a life insurance plan?

From starting a business to getting married, there are plenty of reasons why you should consider getting a life insurance policy plan. However, if you have accumulated enough monetary resources to sustain a good lifestyle for your family even after your death, then you might not need it.

Although dropping your life insurance might feel quite risky, there are certain times when it makes sense financially. As the general purpose of life insurance is to support your loved ones when you die. If nobody relies on your income, you don’t need to have any protection at all.

Perhaps, the money you spend on premiums can be used for daily expenses or retirement planning instead. When you hold a policy that you don’t need anymore, you’re simply wasting money. With that said, let us discuss who all can skip buying a life insurance policy plan:

1. Couples

Whether it’s already been the silver jubilee or you’re just married, you and your better half planned your life based on a certain level of income. Whole life insurance keeps you financially stable in case any drastic changes take place, it is not required unless either of you maintains that specified income level.

This is certainly true for working couples, but one of you still might consider taking an extended break from your job in case of the death of their loved ones. A life insurance policy plan helps readjust to the new circumstances and helps you afford those days of grief without having to worry about your finances at all.

2. Business Partners and Owners

With a new business idea, there come costs of inventory, initial investment, and in some cases, debt. To make sure that the company can meet its long-term debts, business owners must make sure that they protect both their business and personal interests with life insurance.

If the owner passes, unfortunately, their family can survive through the circumstances until the business can be sold or continued. In case you have a business partner too, you may consider them as your professional spouse.

They’re also required to be protected with an appropriate type of life insurance in the event of another partner’s demise. However, if you don’t own a business and have no dependents, you can simply skip getting life insurance.

3. Mortgage Holders

If you have any existing debt or mortgage on your account, such as a home loan, then in the event of your death, your family will have to pay the remaining debt. However, with the proceeds received through life insurance, this doesn’t appear to be a problem at all.

A lender would anyhow need the assurance that the mortgage payment will be recovered no matter what. In case your dependents fail to do so, they might have to face the second tragedy of leaving their own home at such hard times.

However, if you have no house or no dependents to pay off your remaining debts, why do you even care to read this far?

4. Divorcees

While being apart from your loved ones can be very hard, it also makes you free from various responsibilities and conflicts due to which the idea of uncoupling originated. Nevertheless, if you don’t have any children and divorced your partner recently, then you also give up on your dependence on life insurance.

However, in case there are post-divorce financial responsibilities or minor children involved, then the judge might suggest both the partners have a life insurance policy plan for the benefit of both the partners.

5. Minor Children

A child’s loss can be very devastating for parents and might leave them in extreme grief for a while, which may also require them to take time off from work. In addition to the emotional aspects of the situation, funeral and burial costs can also be very hard to deal with.

While it’s very uncomfortable to even imagine such a thing, it also signifies the importance of protecting your family with life insurance, especially when you have minor children to take care of. There are even some riders that allow you to add minor children to the policy without purchasing a standalone plan.

These riders usually stay in effect until your child turns 18 years old and self-sufficient enough to bear their living expenses. In case you want lifelong protection for your child, then you can also consider purchasing an individual life insurance policy plan.

However, as you may have already guessed, no minor children mean no hassle to get life insurance for both you and your child. So far, people with no dependents, no business, and no children don’t need life insurance.

Who Should Have Life Insurance?

If there’s anyone who might suffer because of your death, you need to have life insurance to protect them if they matter to you. Typically, there are several important reasons to consider having life insurance.

Parents with young children must have a reliable type of life insurance plan to be able to raise the child with proper care and necessities. Moreover, business owners with a significant amount of debt also need to have life insurance to keep the business running and pay off the debt even after death.

Additionally, if your spouse is close to retirement and hasn’t invested in any pension plan already, you still make sure that you have life insurance to fund a stable lifestyle for your spouse in the event of your unfortunate demise.

Bottom Line

As you read above, people with no partner, business, or family need not purchase life insurance as there is nobody who depends on them to live their life. If you resonate with these exceptions, you can save a lot of money by not investing in life insurance. However, in case you don’t, make sure you zero in on a policy as soon as possible.