Do I need this insurance policy?

Do I need this insurance policy?

Here are some basic questions you need to answer
*What are my liabilities?

*What funds do I have for dependents?

*What is my corpus and liquidity?

Once you answer these simple questions, evaluate your responses and check whether you come under any of these situations

I. No liabilities. Enough assets for contingencies and your dependent.
II. No liabilities, but not enough assets.
III. Have liabilities. Also, not enough assets for self and dependents.
IV. Have liabilities, but have assets as well for self and dependents.

Situation I - Congratulations There is no need for any life insurance for you.
Situation II - It's better that you buy life insurance, but do a complete analysis before you do so. Calculate the shortfall in terms of accumulated assets and buy a pure term plan accordingly.
Situation III - You certainly need life insurance. Get one ASAP.
Situation IV - Do a detailed analysis of your situation to check whether liabilities are minimal or significant. If liabilities are minimal and cannot jeopardise your family's financial health, then you might not need life insurance. However if liabilities are sizeable, you should opt for life insurance.

Now that you are aware of what needs to be done, take a call on the cover that you should purchase. Make sure that you buy a sizeable cover to take care of your liabilities and family's income needs. Finally remember to separate investments and insurance and just opt for a simple term plan.