Insurance Needs at Every Stage of Life

Your insurance needs change at each stage of life. When you are young, you usually have less need for life insurance, but when you have a family, you need increases with an increase in family responsibilities. Then, when your responsibilities begin to decrease with increasing independently of your children and your wealth accumulation, insurance needs you back down. Let's see how your life insurance needs change throughout your life.

The single

As a young adult, you are no longer dependent on others for your financial needs. In most cases, your death will not create financial hardship for others. For a young bachelor, life insurance is not a priority. Some financial advisors recommend you to buy life insurance at this time. The reason is while you're still young and healthy so it is easy to get a low premium. This argument is true, especially when you have a background of high-risk families have a medical condition such as diabetes, hypertension, etc. in old age.

Most life insurance is purchased by a young bachelor is associated with liability insurance, such as life insurance for mortgage or vehicle and other loans. Auto insurance is usually bought by a bank or financial institution on your behalf at the beginning of the loan. Your life insurance needs increase if you support the livelihoods of parents, siblings or foster child. In this situation, life insurance is needed to provide financial support to them if you die.

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Housekeep

Married couples without children usually have little need for life insurance. If you and your spouse both have income but not yet own a home, death of one of you will not be a financial disaster for others. Once you buy a house, the situation began to change. Expenditure burdens may be hard for the surviving spouse if only borne alone. Credit card debt, mortgage debt, installment furniture, and other debts can be a terrible burden. To ensure the surviving spouse can maintain the level of welfare, you might want to purchase a small amount of life insurance. It will give you peace of mind because you and your partner are financially protected from undesirable things.

Raising children

If you have children who are young, your life insurance needs peak. In most cases, where you and your spouse work, life insurance is needed for each of you. If one of you die, your surviving spouse will be difficult to cover household expenses and child care with a single source of income. Life insurance is especially important for families whose income depends entirely on one person. If a breadwinner dies without life insurance, financial catastrophe occurs. In any situation, life insurance should be owned in enough to cover the revenue lost due to death of family breadwinner.

Career

For many people, career advancement means moving jobs to the new company. At some point, you might even decide to become your own boss and start your own business. You need to review your life insurance every time you change jobs. Keep in mind that when you leave your job, life insurance protection provided by your old company usually ends. You have to get it back at a new company or buy its own insurance protection. In some insurance companies, you can change your life insurance coverage that long, which is part of group insurance, the individual life insurance with the same sum assured, without the underwriting process again. Try to explore this possibility, especially if you have a medical condition that can be difficult for you to buy life insurance elsewhere.

Also, make sure that the amount of coverage you are always up-to-date. The insurance policy you purchased some time after you are married may no longer sufficient, especially if you have kids, have a loan, and plan for college costs. If you have a business, your business debts need to be considered for inclusion in the calculation of insurance. If not, the family is you who will be burdened with the responsibility to pay it off after your departure.

Divorce

If you and your spouse divorce, you should review your life insurance. Divorce can cause problems both in terms of heirs (beneficiaries) as well as in terms of sum assured. If you and your spouse have no children, the problem may be just as simple as changing the beneficiary's name and adjust the sum insured to your needs as a single. However, if you have children, you need to make sure that they, and not your ex-spouse, who will get the benefit when you die. This may mean you need to change the name of the beneficiary of your spouse to your children. You may also need to purchase a new policy, if the old policy owned by your spouse (the policy holder is your spouse, but tertanggungnya is you). The decision will be complicated if the custody of the child has not been ascertained by the court.

Old age

In the old days, your insurance needs changed again. At that time, your dependents may have been reduced. The children are financially independent. Home and your car is paid off and you may have a substantial financial assets. Your need for insurance protection was not as before. However, you still need insurance for a particular purpose. For example, the benefits of a life insurance policy you can use to pay your final expenses (hospital bills, funeral costs, etc.) or to replace income lost because of your spouse's death (for example, because the decrease in public pension). Life insurance can also be used for purposes of inheritance or donated as waqf to charitable organizations.

Examples of the use of insurance for inheritance can be seen in the case of Mr. Ahmad (not his real name). Mr. Ahmad at the age of 60 years still have life insurance with coverage of 300 million. He has 4 children all married, except one person who still attend high school. In children grown, Mr. Ahmad equip them with the home when the marriage. Mr. Ahmad is now no longer own land or houses to be given to the youngest child. However, by appointing his youngest child as the recipient of death benefits, he hoped the division of property to his children become more equitable.