Status as a family head who has a wife and child dependents, making life insurance as a product that needs to be taken into account. Imagine if something undesirable happens, it will certainly be troublesome for the family.
The family will be bothered with living expenses to guarantee the child's future. So many people decide to have life insurance. With life insurance, the sum assured when you die can be a living financing assistance for family or heirs. Dependents can include the cost of children's education.
Although important, but there are some signs that you don't need to buy life insurance. So there is no need to spend multiplied funds just to buy insurance products. You don't need to have life insurance, as long as your condition meets the following criteria:
1. Abundant Assets or Appropriate Assets Value
The function of life insurance is a substitute for financial risk if something unexpected happens. For example if the policyholder dies. Then the benefits will be left to the heirs.
But if you have sufficient assets or assets, life insurance is not a must-have. For example, if you have a large enough deposit, of course this will benefit your family later.
However, make sure the amount of the deposit must be at least equivalent to your annual income. Thus, if something happens, the deposit rate will serve as a substitute for your monthly income for the family.
2. Many Assets or Liquid Properties
The type of assets or assets that you own must be at least liquid, which means that it is easy to cash in whenever needed. For example is gold (precious metal). Of course it will be very easy to withdraw this one asset.
In addition, you must ensure that all documents owned are official and appropriate. So it does not reduce the value of the assets later. Another example is the ownership of mutual funds, shares, and foreign exchange (forex), which is also very easy to cash in at any time whenever needed.
Simply following the terms and conditions that apply, the bank will more easily withdraw the asset. It can even be waited on the same day when the disbursement is done.
3. Children are grown and independent
If your child is an adult and is independent, life insurance is no longer a priority to have. Because, the existence of the child is no longer a significant responsibility for you.
In addition, the provisions of this life insurance product are only to facilitate dependents of children aged maximum 23 years. So if your children have approached the age limit, then you are not required to have life insurance, because the benefits will not be maximized.
If you are still interested in life insurance products, simply choose a protection contract according to the age of the oldest independent child. For example, the oldest child is currently 15 years old, so just take insurance products for a period of 8-10 years, no need for up to 20 years or more.
The point is adjusting to the needs of your family, because each family may have different cases. So that the determination of the type of investment is also different.
4. Having a house and car is more than enough
Even though the asset model in the form of a house and a car is relatively difficult to be disbursed / cashed, it is not important to have and bequeathed to the family. Because property prices will continue to rise every time, although this is not the case for cars, but this can be the future of children.
Therefore it never hurts to invest in property as a substitute for life insurance. But what also needs to be considered is that you buy the property in cash so that the family is not burdened with mortgage or car payments.
5. Have a business or business inherited
Leaving a business / business for the family is also important if you really do not intend to buy life insurance products. For example, if you already have a Frenchise minimarket business, that means it is already in the established category and is able to leave a business inheritance that can be passed on by the family.
As long as it is managed properly and correctly, then your business will be able to replace the amount of your income. Make sure the requirements for the transfer of ownership of your business to these heirs are clear and hassle-free. So it does not cause disputes and the administrative process runs easily.
6. Have a Pension Guarantee from the Workplace
Some companies provide pension facilities to their employees that can be passed on to their heirs. If you work for a good company like that, then you don't need to worry anymore for the family's future.
Make Sure Yourself Eligible to Choose Don't Have Life Insurance
Do you meet the above criteria? If yes, then it's OK if you choose not to have life insurance. You just need to maximize assets and manage them well. So when something unexpected happens, there is a guarantee for the family and the future of the child. But if you find that you have these criteria, do not try not to protect yourself with a life insurance guarantee.