5 Reasons Why You May Not Need Life Insurance
It is a common misconception that everyone needs life insurance. However, that’s not always the case. Although life insurance can be a valuable financial safety net for your loved ones, there are certain circumstances where you may not need it. William Schantz of mafllc will explain how getting a life insurance policy may not always be the best choice.
5 Reasons Why Life Insurance May Not Be the Best Choice
Cashing Out Your Life Policy
If you have a life insurance policy you no longer want or need, you may be able to cash it out. This option is only available with whole life policies, not term life insurance policies. When you cash out your policy, the insurer will give you a lump sum of money that is equal to the cash value of your policy.
You May Already Be Covered
According to William Schantz, if you have a job, there’s a good chance that you already have some form of life insurance coverage. Many employers offer life insurance as an employee benefit. The amount of coverage will vary from employer to employer, but it’s typically one to two times your annual salary. If you have a spouse or partner, they may also have a life insurance policy that would cover you in the event of their death.
You Need Care Insurance, Not Life Insurance
If you’re healthy and don’t have any major health concerns, you may not need life insurance. However, you may still want to consider getting long-term care insurance. Long-term care insurance covers the cost of extended medical care, such as a nursing home or in-home care. This type of coverage is designed to help pay for the costs of long-term care, which are not typically covered by health insurance or Medicare.
Self-Insured
Another reason you may not need life insurance, as per William Schantz, is if you have enough money saved up to cover your final expenses. This is often referred to as being “self-insured.” If you have enough money in the bank to cover your funeral and other end-of-life expenses, you may not need a life insurance policy.
You Have No Dependents
If you don’t have any dependents, you may not need life insurance. You may perhaps be single with no children, or your children may be grown and independent. In either case, you may not need life insurance to financially protect your loved ones.
It is normally those people who have dependents that need life insurance the most. If you have a spouse, partner, or children who rely on your income, you may want to consider getting a life insurance policy.
If the main breadwinner of a family passes away without a life insurance plan, it can put a lot of financial strain on the surviving spouse and children. The house itself may be lost, or the education of the children may be affected. But as people grow older, there is less financial pressure especially if your children are starting to earn for themselves.
Conclusion
William Schantz has given several reasons why you may not need life insurance. However, everyone’s situation is different, so it’s important to speak with a financial advisor to see if life insurance is right for you.
