Why do you buy insurance ? How do you judge your cover?

Question

To invest money .

To save tax.

To make a Saving.

To make oldage happy.

Save for the childrens.

Think of family after U missing in the world.

To create wealth.

Answer 1

Life insurance is very simple to understand:

You need life insurance only when somebody else depends on your income (kids or elderly parents), and they will go through financial devastation if you were to die prematurely.

The coverage that you need is 8-12 time your annual income. In other words, enough money to provide for your family until your kids are adults or your parents are taken care. Idealy the survivor spouse should invest this money so it last long enough so the whole family is taker care of long after one partner died.

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