Most of us live in a belief of immortality; to us early deaths, families going through bad times are only stories that we hear from a friend or about our friends or distant relative or a neighbor. We sympathize with them but ignore the odds that something similar can happen to us which will leave one’s family in despair and financial deprivation.
The irony is that we buy car insurance without a second thought because it is mandatory. But we ignore life insurance, which is more important for our family. Life insurance is needed for everyone who makes an economic impact to somebody else’s life. At any point in time one should have planned in such a manner that in one’s absence, the family will not need to compromise on their current lifestyle and yet-to-be fulfilled needs. In an ideal scenario, one should at least have a life insurance cover equal to one’s annual income multiplied by number of years to retirement. However this amount is just a starting point and must be put into the context of other liabilities, expenses, inflation and current ability to set money aside for it.
The decision to over-scrutinize or ignore the decision to purchase a life insurance puts the family in a great risk of financial hardship in absence of breadwinner.
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