That is one of the wisest questions to ask from ourselves. We engage with hundreds of activities on a daily basis. Each and every activity in our lives carries a calculated risk for our lives. To survive against these risks and threats we need to have protection for our lives and critical events. This is the place where life insurance enters the scene.
There are different kinds of life insurance products. Insurance products differ from company to company and country to country. we have a common set of motives when it comes to life insurance.
1. Health Protection Motive
No one lives diseases free life. Humans are vulnerable to dangerous diseases and unpredicted accidents. Imagine that you are the only earner and you are hospitalized following one of the above reason. And on the other hands, the other members of your family needs a continuous income to maintain the domestic stability and you need to pay off your hospital bills to return home. For that reason, we need health insurance to maintain peace of mind.
2. Family Protection Motive
At the death of an earner of a family, it still needs to maintain domestic stability. The family of the earner faces double troubles from the funeral expenses to future expenses. This why you need family protection if you are the only earner of the family.
3. Retirement Planning Motive
We are getting closer to the other end of our lives. Though we save money for the day to day needs, most of us don’t invest money for the future. Few of us will receive a pension at our retirement. Some of us may receive a lump sum of money at retirement. But, most of us have no plans for the retirement age. The good news is that insurance companies offer a range of retirement planning products which will give you a monthly pension or a lump sum at the retirement.
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4. Children’s Education Motive
Education is the best investment in our children. We live in a world where education is increasingly becoming a commodity but not a privilege. If the parents can allocate a small sum of money on a monthly basis or a large sum of money as a single payment, the child will receive a large lump sum in return especially at the beginning of higher education.
5. Investment Motive
of money on a daily basis or on a monthly basis or on an annual basis with an attractive compounding interest rate. Disregarding the future protection motive, we should have built a fund in the future. We can invest a small sum of money on a daily basis or on a monthly basis or on an annual basis with an attractive compounding interest rate.
In the final analysis, having the appropriate kind of insurance is far better to not have it. And the answer to your question should be ‘Yes!”.