Do I need life insurance before I invest money in the stock market? Asked by a reader of InvestmentTotal; Should I really need to acquire life insurance first before I invest in the stock market? I don’t have extra money left to buy such thing. Is it really required in investing? Is it necessary to have a life insurance? The life insurance will cost too much. Instead of spending my money in buying an insurance, let me just buy stock shares. Today, let us give some clarification to this question.
Investing in the stock market today is so easy, you can just download an investment form in a stock broker website. Fill out the form, print and submit. Once you are approved, fund your account and start buying stock shares.
That’s so simple. That’s why many people tend to invest in the stock market due to its convenience. But they forgot the things to prepare before investing their hard-earned money.
Do I Need Life Insurance Before I Invest Money in Stocks?
Going back to the insurance and stock question. The answer is No. You can invest in the stock market even if you don’t have any life insurance yet. However, your financial situation is in risk if you are not insured.
Example, if you are the breadwinner of the family and they depend on you. What if something bad happened to you (accident or sudden death).
Reasons Why I Need Life Insurance
How can you help your family to recover financially? Can you just give them you’re shares of stocks? What if there is a stock market crash and the market value of your stocks aren’t enough to support the financial needs of your family? Have you think about that? Remember stock market is risky. The value of your stock is uncertain. The stock price fluctuates.
Now you know why Do I need life insurance? Therefore, even though I can invest in the stock market without a life insurance, it is ideal and advantageous if I am insured before I invest my money in the stock market. The amount of benefits or the insurance coverage can help my family to survive just in case I died accidentally. I hope this short and simple article answered the simple question about investing without insurance.