Do you need to insure your life?

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Whether or not to insure your life, not to leave his family destitute, if you suddenly something happens? There is no universal answer to this question. You need to make a decision based on the individual financial capabilities and abilities of each individual family.

In this article we will deal with what and how we should start an assessment and analysis of their family financial situation. As a result, you can decide whether you want to insure your life and pay monthly premiums, or it will be for you not much need to spend money.

Please rate the overall situation

First you need to take into account all of the major sources of income and expenses. Mortgages, car loans, home appliances, credit card debt - remember and write down all of your monthly payments. Daily cost will be discussed in the next paragraph. Next, take into account all assets: savings, investments. You need to calculate how much of this money will be enough for the loan payments if your contributions will cease today.

Analyze your daily expenses

Awareness of where every day the money is spent will greatly help you to understand whether or not your family be able to survive without your income. And if you are at least the previous two years were recorded monthly expenses, then it will give you an excellent base for the analysis of household expenditure in the future. Think about whether your family will be able to maintain the previous standard of living and to pay all these costs, if your income suddenly disappear? This will be a serious gap in the budget? Then the life insurance you need.

Look to the future

Let's say your family is well able to provide for themselves today without your income. But look at the future. Children need to go to university? It also costs. Or perhaps you want to protect their savings, want them to have got children and grandchildren, and have not gone to an urgent payment or a credit to your funeral. By the way, if we are talking about it, the funeral - an expensive process, and after carrying out your family may be in debt.

Think once more

Although the preceding paragraphs could push many to the decision to insure their life, yet do not rush. List the items the presence of which makes you life insurance unnecessary waste of money:

• your family does not pay the mortgage or other major loan;

• you do not have children or they have grown up and graduated from the University;

• members of your family earn enough and should be able to do without your earnings;

• your savings and investments will be compensated by the funeral, medical bills and loans.