6 types of people who must have life insurance

Many people in India don’t see the need for life insurance.Here are six scenarios in which you could benefit from life insurance:

• You’re the main breadwinner: Protecting your family is the main reason to buy a life insurance policy. If you’re the sole breadwinner of the house and have dependents like a spouse, aging parents or school-age children, your unexpected demise would leave a financial void in the family.

• You’re a divorced parent: If you are divorced and your partner is taking care of the children with financial support from you, your death would leave them in a financial mess.

• Your child has special needs: Being the parent of a special needs child can be stressful enough without the added worry of leaving your child financially helpless after your death.

• You have an outstanding home loan: If you have just bought a home or your existing house is still mortgaged, the sum assured from a life insurance policy can cover the outstanding home loan in the event of your demise. A life insurance policy gives your dependents the option to pay off the mortgage, although they can decide not to use it for that purpose.

• You own a business: For a business owner, financial worries such as debt and taxes are constant. But in the event of your death, the entire burden falls on the surviving family members. If you have a life insurance policy, it can help pay off your business debt and take care of your estate taxes.

• You have significant debt: If you have student loans, personal loans or any consumer debt such as a credit card, it’s generally not cleared when you die. Your family will have to pay any outstanding amount. Your life insurance payout can take care of this debt.