Any individual living anywhere in the world will appreciate a life of financial freedom and security. In a country like the United States of America, where the cost of living is significantly higher than in most other countries, people are especially concerned about their finances and unavoidable expenses.
According to William Schantz, this is precisely why nearly 54% of American citizens have chosen to invest in some form of a life insurance plan to lead a more financially secure life and leave behind an inheritance for their loved ones.
Continue reading below to learn about whether investing in a life insurance plan is a good idea for you.
Do I Need to Invest in a Life Insurance Plan? Here Is What Schantz has to Say
Since applying for insurance comes with a certain cost, people are often confused regarding whether incurring the cost of investing in life insurance is worth it for them. The following question will help you decide whether life insurance is right for you or not:
1. Are You Your Family’s Primary Breadwinner?
The main reason why most people usually apply for a life insurance plan is that they are their family’s sole or primary source of income.
Suppose a person on whom most family members are financially dependent is to pass away. In that case, the family left behind will have to suffer from a severely damaging financial crisis. This could result in the family selling their major assets or even dropping out of college.
Hence, if you are your family’s primary breadwinner, investing in an insurance plan should be your absolute priority. It will offer you great peace of mind during your life and give your loved ones financial support in the event of your passing.
2. Do You Have any Children or a Spouse?
Life insurance is not as beneficial for someone who doesn’t have children, a spouse, or living parents. Since the person is not financially responsible for other individuals’ needs, they do not have to worry about investing in a life insurance plan.
Instead, according to Schantz, such a person would benefit more from investing in a savings account. This is because a savings account is much more liquid and easily accessible than an insurance plan.
3. Do You Have Sufficient Accumulated Wealth to Pass On?
Suppose a person already has built a fortune, has a highly profitable business, or has already made sufficient great investments that they could pass on to their loved ones. In that case, they need not worry about investing in an insurance plan.
According to William Schantz, such a person’s family would not have to face any major financial problems if the worse were to happen and would already have a pre-setup stream of income coming from the business or the other investments.
Final Thoughts by Schantz
Although the insurance companies tend to point out that every person needs to invest in an insurance plan for a safe and secure life, this is not always true for everyone, as mentioned by William Schantz. People who have no family to pass an inheritance to or already have made several wise investments need not worry about a life insurance plan.