5 Disadvantages Of Not Having Life Insurance
Not everyone believes in life insurance, since others think its main aim is to make money from you. Of course insurance is a business, but its business is taking care of you while you are here and your family after your death. Therefore, if you are not yet insured, here are some challenges you may face along the way.
- High unforeseen costs
The whole purpose of life insurance is to assist you financially. In life, anything can happen to you the minute you step outside your front door without a warning. Most of us are aware that expenses always pop up when you do not have extra money. You can imagine not even being able to pay your hospital bills! Spare yourself the embarrassment of having to borrow money anytime something goes wrong.
- Lack of peace of mind
Without life insurance, you always worry and live a life with limitations even for your dependents. Life insurance gives you one reason not to worry. Having dependents makes you always alert and guarded of what happens to them. Even after you die, it ensures that your loved ones are well taken care of financially; they continue with their education, maintain the current lifestyle and just cater for daily expenses.
- Loss of assets
Majority of you have debts or loans that are secured by some of your assets. That is good for you, if you are insured. Otherwise, after your demise, there is a high possibility that the debt collectors will be visiting you residence soon. This means all the investment you had (assets) will be owned by these companies, until the outstanding balances are cleared.
- Can be a burden to loved ones
Your loved ones deserve peace of mind as well. Without insurance, you risk burdening them financially. This could be hospital bills, mortgage bills, funeral expenses, school fees etc. which they them-selves had not planned for. Just when they think they are done with one sad event, they receive numerous phone calls from the banks, bills and even personal visits to talk about your debts for years. All this can be avoided by getting insured.
- Lose investing your money
It will come a time when you will age and retire. Not everyone plans for his or her future and instead of choosing the best life insurance policies; you prefer having a savings account that you probably withdraw every now and then to cater for your luxurious life. The result is regrets of not investing while you had the chance. Moreover, financial institutions are likely to decline your loan application, because you do not have enough proof that you have a source of revenue.