Benefits of Insurance Care

Lets talk about home insurance scenario. So this is just an example, let's say tomorrow your house were to burn down. How badly would that affect you?

If you have millions of dollars sitting in a savings account, it'd be no big deal. You've basically self-insured against this kind of catastrophe.

If everything you own is in that house, it'd probably hurt quite a bit. Since the loss of your house would be devastating.

it's a good idea to buy homeowner's insurance to make sure that should the worst ever happen, you won't be living on the street.

When it comes to life insurance

You are basically asking the same questions except relating to your own death. What would happen if I died? What measures do I want to take to make sure those things don't happen?

In my own case, I'm a 29-year-old girl. The only people I care about financially are my husband and my children. My husband makes more money than I do. The only financial consequences my death would cause them is the price of my funeral, and the life insurance policy I have through my job is more than enough to cover that.

There is no reason for me to get life insurance. They will be emotionally hurt a great deal by my death, but it will not leave any of them destitute and desperate.

My questions to you

What is your situation? To what degree are people you care about dependent on the resources you provide in order to survive? What would happen to your wife and kids if you died? Would life go on more or less as usual? Or would they be destitute?

Are there things you want to make sure happen, like sending your kids to college? Will they still be able to do those things if you die, or are those plans impossible when you're not in the picture?

You are the only one that can answer

It's your call. You're buying peace of mind and safety for your family, just as you are with any other kind of insurance. Whether you think that's a waste of money or absolutely vital depends on your own perception of risk and how devastating your death would be.

I hope this has helped you see the whole picture though.