How to know if I need life insurance – The insurance blog

How to know if I need life insurance

The short answer to the question «do I need life insurance?» is if. Life insurance is useful for everyone, at any age. But there are certain moments or situations that warn that it is time to think about hiring him.

In Spain, more than 17 million people have risk life insurance, according to data from Unespa, the employer's association insurance carrier. In the event of their death, their families will receive compensation to help them pay debts and cover expenses. They are very sold policies for the tranquility they provide.

Who contracts life insurance?

Of those 21 million people insured, a little more than half are men . Specifically, in 2018 the 56% of the people protected by life insurance were men. Over time, women have been acquiring these products and are now practically half of those insured. For example, in 2005 were the 40%; now him 44 %.

In addition, it is a product that not only couples hire, but is also very popular among singles. In 2018, the percentage of married and insured singles was very similar (43% versus 37%).

And, in terms of age, are more common among people who have from 35 to 44 years. Almost a third of the insured are this age. And 1 in 4 people between 45 and 54 is one.

The 5 keys to knowing that I need life insurance

These figures show a reality: life insurance is useful at any age or marital status . However, there are certain moments that will tell you that it is time to ask yourself the question: «Do I need life insurance?»

1. When are you going to live alone

You are young and you are leaving home. Do I need life insurance if I live alone and have no responsibilities? Yes. Although perhaps not so much the traditional policy, yes you are interested in life insurance with disability.

When you become independent, you depend on 100% of your income. You are your own sustenance, you have to go to work to support yourself. If something happened to you and you had to request disability, what would happen to your independence? Disability policies not only compensate your beneficiaries if you die; They pay you if you have to ask for disability. In case something happens to you, you will have financial assistance to maintain your independence, even if you cannot work.

You don't have to be older and have responsibilities to take out these policies. In fact, they are very popular with people from 25 to 34 years. This age range supposes the 17% of life insurance, although they are only 14% of the population.

2. The mortgage

In 2020 more than 333 were signed. 000 new mortgages, according to the National Institute of Statistics (INE). It is one of the most important financial decisions of a person or a family and also one of the largest expenses. According to data from property registrars, the median mortgage during the last quarter of 2020 was 592 euros per month .

The death of a person not only has an emotional impact for their loved ones, but also an economic one. If a household loses one of its livelihoods, it will have to support itself on less income. That is what helps palliate life insurance. In fact, 4700 families a year manage to meet their mortgage after the death of a member thanks to these policies .

Think that, if something happened to you, your mortgage debt would pass to your heirs (children, spouse, parents …). If you have a mortgage life insurance, it will pay off the debt and your family will be able to enjoy the home without further expenses.

3. Children

Having children is one of the main reasons to get life insurance. In fact, the age range that most contracts these policies is that of 25 – 54 years, about the age at which you have young children. If anything happens to you, you want to be sure that your children will not have to worry about money . In case you die, the compensation will help your loved ones to meet daily expenses: studies, house …

4. Other debts

In general, life insurance is important when you have any debt. It can be a mortgage, but also any other: a loan for a car, a loan to study … Thanks to these policies, your loved ones will not have to assume that burden if something happens to you.

5. When you have people in your charge

Life insurance is essential when someone else depends on us. They can be our young children, but also our parents when they are older or a family member who is sick. Do I need life insurance for myself? If someone depends on you for their day to day, you really need it by and for them . With these policies, you will not have to worry about money if you are not there. They are a guarantee of the future for him and a peace of mind for you.

The usefulness of life insurance

As you can see, there are many reasons to take out life insurance. If you live alone, if you have children or take care of someone or if you have bought a house, it is time to stop and think about the future. Do I need life insurance right now? The answer is yes: whatever happens, your financial peace of mind and that of yours is priceless. Enter our comparator and you will see that hiring one of these policies is not expensive. Consult without obligation!

Comments are closed.