WLTW

Willis Towers Watson Public Limited Company

231.56
USD
-1.19%
231.56
USD
-1.19%
197.63 271.87
52 weeks
52 weeks

Mkt Cap 28.85B

Shares Out 124.61M

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Does It Ever Make Sense to Skip Life Insurance if You Have Dependents?

Life insurance is extremely important for anyone who has people depending on them. Whether loved ones need the money that the policyholder earns or the services they provide, coverage can help ensure that those who are left behind are provided for and not left in the lurch when an untimely death occurs. Of course, there is a cost to buying life insurance, so those with dependents may wonder if there's ever a situation where it makes sense to skip getting covered. For most people, the answer is no, but there is one exception. Here's when it may make sense to go without life insurance The only time it makes sense for someone with dependents to go without life insurance is if there would be no need for surviving loved ones to receive any money after a death occurs. This could happen if someone was independently wealthy and had plenty of money to cover all of the costs surviving family members would face. For example, a person who had no large debts, and who had diligently saved money and had a substantial sum in their bank account might not need life insurance. In this case, if the individual passed, surviving family members could use the money in the bank accounts to help cover any costs the deceased would have helped pay for as well as pay funeral expenses. Most people need to get covered to protect their families Many people eventually get to the point where they do not need life insurance anymore. For example, an older retired person with a healthy savings account wouldn't necessarily need coverage even if he had a wife who he was helping support. In fact, this is why term life insurance is a good choice for most people. Term life insurance remains in effect while a policy is needed, and the coverage generally ends after a substantial number of years once someone no longer has loved ones relying on their income or services. But, this doesn't happen for a long time for the vast majority of people, as those early in their lives or in the middle of their lives usually do not have enough wealth amassed to replace their income and cover everything their survivors might need. For those who don't have a lot of wealth, it's important to get life insurance coverage sufficient to replace their income for as long as it is needed; to repay debt in full; to cover mortgage costs; and to pay for the education of any surviving children. Those who have a lot of wealth may also want coverage as well, because life insurance could potentially help pay estate or inheritance taxes so other assets do not have to be sold to cover those costs. Ultimately, every individual should carefully think about what their dependents or loved ones would need after they are gone. If there is any chance money would be required, getting life insurance could provide crucial help to surviving family members. It's always better to have a policy that turns out not to be needed rather than to need a policy and not have one, so consumers should err on the side of caution unless they are sure their savings is sufficient to meet all their dependents' needs. Top credit card wipes out interest If you have credit card debt, transferring it to this top balance transfer card can allow you to pay 0% interest for a whopping 18 months! That's one reason our experts rate this card as a top pick to help get control of your debt. It'll allow you to pay 0% interest on both balance transfers and new purchases during the promotional period, and you'll pay no annual fee. Read our full review for free and apply in just two minutes. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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