Insurance is one among the different kinds of investments a person can make and in fact when it comes to life Insurance, the dependents are compensated by way of life cover. However, there are some facts about investing in insurance. Unlike fixed deposits where investments can be made at any time, under certain situations insurance is not at all required and sometimes any investment in insurance amounts to wrong decision making on the part of the investor.
Insurance advisers normally advocate the following circumstances during the course of which insurance is not at all required:
When a person is not married and do not have any dependents who depend on his income, he need not opt for insurance;
In case required assets are available which will take care of the requirements of the family, there is no need to spend on life cover;
In case the spouse is earning a good salary and earn reasonable income there is no need for an insurance.
In the case of retired people, insurance is not required because insurance is meant to replace the income of an individual and as such a retired person does not need any cover, unless he has liabilities that extend after retirement.
In other words, insurance is required under the following situations:
When parents retire and income level is reduced, additional insurance is advisable;
Despite the facts that the spouse is earning, probably he/she may be depending upon the other person for financial support and increasing the cover is advisable;
At the time a child is born and on account of increase in responsibility;
In case the person quits the job, he needs a bigger cover because he might have lost money of the benefits that employees are entitled to in the organized sector.
