Do You Need Life Insurance?

“You can’t escape death, taxation or life insurance salesman” Herbet Denenburg.

Consumer Association of Penang laid down some guidance for you on life insurance.

Do you really need the policy?

Life insurance basically the policy where the risk insured against is the death of a particular person, the insured, upon whose death while the policy is in force, the insurance company agrees to pay a stated sum or income to the beneficiary.


Thus, the keyword here is the insurance policy beneficiary. It is the protection for your beneficiary.

1. If you a married man, you’re most likely need life insurance
Man is usually a breadwinner in the family. Thus, his death basically will cause his dependants lost financial resources, income and protection. Unless, you’re very rich person and your estate is more than enough for the next generation, then you don’t need life insurance.
You need life insurance especially when your wife is not working and you have children. Thus, they are all very dependant to you.

2. If you’re a wife, maybe you need life insurance
If your husband could give you more than enough, you’re unlikely need life insurance. However, if your income is vital for family income (both husband and wife) thus you should considered yourself to be insured too and your coverage may not as high as your husband.

3. If you’re kids, no.
Kids have no dependants, thus they don’t need life insurance at all. But remember, an insurance agent may says that insuring the kids when they are still young will mean savings on premiums and ensuring their insurability when they are grow up. The premium depends on the age of the policy holder thus, when kids are insured, the premium is low.

However, from the larger point of view, why spend your money in something that you not needed yet? It is better for you to create a special fund to cover their education in any investment fund. Only a small groups of children need insurance protection because of poor health.

4. Single, unlikely
If you are still a bachelor, you may not life insurance at all. Unless, you’re supporting financially your parents and family. However, please make sure you’re living healthily before you find out that you’re not-insurable because of your health problems. If you thinking to get lower premium, maybe it is the time too.