The status of being the head of the family who has the responsibility of his wife and child, makes life insurance one of the products that needs to be taken into account. Imagine if something unwanted happened, it would certainly be troublesome for the family.
The family will be bothered with the cost of living to guarantee the future of the child. So many people decide to have life insurance. With the existence of life insurance, the sum insured when you die can be a living finance assistance for families or heirs. Dependents can include the cost of children’s education.
Although important, there are a number of signs that you don’t need to buy life insurance. So there is no need to spend multiple funds just to buy insurance products.
It’s legal You don’t need to have life insurance, provided your conditions meet the following criteria:
1. Abundant Assets or Appropriate Asset Value
The function of life insurance is a substitute for financial risk if something unexpected happens. For example if the policy holder dies. Then the benefits will be given to the heirs.
But if you have assets or some adequate assets, life insurance is not a must. For example, if you have a large enough deposit, of course this will benefit the family later.
Only, make sure the amount of the deposit must be at least equivalent to your annual income. Thus, if something happens, then the deposit interest will function as a substitute for your monthly income for the family.
Therefore, determine the size of the deposit that you planned on the bank correctly. Make sure you get the maximum benefit. The main thing is to find a deposit product that does not make it difficult for the heirs in disbursing their funds.
Make sure when something happens, the family can easily withdraw your deposit funds or can forward the deposit interest with an easy and convoluted process.
2. Many Assets or Assets Are Liquid
The type of assets or assets that you have must at least be liquid, which means they are easy to cash in at any time needed. For example, gold (precious metal). Of course it will be very easy to withdraw this asset.
In addition, you must ensure that all the documents are official and appropriate. So that it does not reduce the value of assets later. Other examples are ownership of mutual funds, shares, and foreign exchange (foreign exchange), which are also very easy to cash in at any time whenever needed.
Simply following the applicable terms and conditions, the bank will more easily withdraw the asset. It can even be waited for the same day when disbursement is made.
3. Children are Mature and Independent
If your child is mature and independent, then life insurance is no longer a priority to have. Because, the existence of the child is not a significant responsibility for you.
In addition, the provisions of this life insurance product are only facilitating the dependence of children aged 23 years. So if your children are close to that age, then you are not required to have life insurance, because the benefits will not be maximal.
If you are still interested in life insurance products, just choose the appropriate protection contract for the oldest child. For example, the oldest child is currently 15 years old, then simply take insurance products for a period of 8-10 years, not needing up to 20 years or more.
The point is to adjust to your family’s needs, because each family may have different cases. So that the determination of the type of investment is also different.
4. Have a home and car more than enough
Although the asset model in the form of a house and car is classified as difficult to cash / cash, it is not an important thing to have and inherit to the family. Because property prices will continue to increase every time, although this is not the case for cars, but this can be a provision for the future of children.
Therefore there is no harm in investing 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 home loan installments or even cars.
5. Have a business or business inherited Business
Passing the business to children is cool 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 Franchise mini market business, that means it is already in the established category and is able to leave a legacy of business that can be continued by the family. As long as it is managed properly and correctly, your business will be able to replace your income. Make sure the requirements for transferring ownership of your business to this heir are clear and not troublesome. So that it does not cause disputes and the administrative process runs easily.
- Have a Pension Guarantee from the Workplace
Insurance from the Company
Make sure there are life insurance facilities from the company Some companies provide pension facilities to their employees which can be forwarded 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.