In this article, we will be discussing what are the 3 conditions when one should not buy term insurance. So, let’s get started!
1) Owning Enough Assets to Cover Life-Related Risk:
- If a person is having enough assets which enable their dependents to live a life free from financial burdens if the person (bread-earner) dies unexpectedly, then one can avoid having the term insurance.
- Simply, it can also be understood in the way that if a person is having enough assets which can cover the financial needs of the dependents after his/her death, then a person can skip having term insurance for him/her.
2) No Dependents:
- The second condition when a person can skip having term insurance is when he/she is not having any dependent individuals on them.
- Such a situation can arise when a person is permanently single (no dependency- parents, spouse, etc.), or when husband-wife both are working individuals and such similar conditions.
- Here one should keep in mind that there might not be any current dependence on an individual, but if any dependency can arise in the coming period, then one should opt for term insurance.
3) Enough Term Insurance Cover from Employer:
- If the term insurance offered by one’s employer is good enough then one can skip having its term insurance.
What Should an Individual Do?
The above 3 stated reasons are the only conditions where a person can skip or delay in having term insurance, but in other conditions, one should certainly have a good term insurance cover for the good financial health of a person’s dependencies, in case of the unexpected death of an individual.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.