Hedging Your Bets

One should keep in mind that insurance doesn’t actually means same as it is in dictionary sense. Insurance is nothing but hedging your bets on something as insurance can’t keep you from dying. While you had chosen to live, if fate has a different plan then you can spend money now to help your family avoid multiple catastrophes afterwards. As we call it an ‘insurance’ most of the people feel that if the coverage is good, then more coverage is better. So getting insurance is nothing but to test one’s capacity to as a responsible adult.

Losing a child is such a massive tragedy. Some parents dispute that they couldn't function after the death of a child, and thus a policy on said child helps them sleep at night. But if you claim you are not going to be able to function anyway, so will it be not a  better idea to keep the money you had have otherwise spent on life insurance for someone who hardly earns any income?

Similarly the less healthy an older relative is, the smaller the death benefit you'll receive for a policy of a similar premium size. Add retirees' limited income and much of the time, senior insurance seems like an unwise move.