Life Policies - When They Matter

Who needs life insurance policies? There are people who don’t need life policies and there are those who do. Anyone who is financially well off enough that survivors can meet all their financial needs and obligations using existing financial resources, without the possibility of depleting those resources, will not require any form of life policy.

The same applies to anyone whose death won’t cause a hardship to others. For example, a single homeowner with a home mortgage and no dependents, if she has enough savings to pay for final expenses and is okay with the home being taken over by the mortgage company if she dies, then she will not require any form of life policy.

Then there are those two groups of people who do need life policies. These include people with someone who depends on their income. For example, a wage-earning parent, if she or he were to die prematurely, the surviving family members will need the financial help that only life insurance policies can offer.

The second group are those who provide services that would need to be hired out in the event of their death. The main types of people who fall into this category are the stay-at-home mums. If she dies when her children are very young, then her partner will suffer a financial loss. At the very least he will require money for childcare, and possibly someone to do the housework. He may also decide that he doesn’t want to work the same hours as before and this is where life policies can make that scenario possible.