Why You Need to Buy Life Insurance

Why You Need to Buy Life Insurance

Why You Need to Buy Life Insurance, For many people, the first introduction to life insurance is when a friend or “friend of a friend” gets an insurance license. For others, a close friend or relative has died without adequate coverage or any life insurance. For me, I met a life insurance company, where I had to arrange meetings with friends and family, while I learned the end and the way out of the industry and I hope to make some sales.

Why You Need to Buy Life Insurance, Unfortunately, most people get life insurance this way – they don’t buy it, they sell it to them. But is life insurance something you really need or is it just an inconvenience shoved under your nose by a salesperson? Although it may seem that the latter is true, there are actually many reasons why you should buy life insurance.

Why You Need to Buy Life Insurance, As we grow older, get married, start a family, or start a business, we need to understand that life insurance is absolutely necessary. For example, imagine a safety net. Without a doubt, you can be the greatest rope walker in the world. You can play without a network, but “Why?” You value your life and the lives of your loved ones, and you would do nothing to show that you feel different.

 Need to Buy Life Insurance
Need to Buy Life Insurance

Why You Need to Buy Life Insurance, Let’s face it, we have no control over the unpredictability of life or unforeseen events. With this in mind, just as a safety net protects life of insecurity, so does life insurance. This is an indispensable and fundamental basis for a stable financial plan. Over the years, life insurance has given many caring and responsible people peace of mind, knowing that the money will be available to protect the most important things in life, family and property in various ways, including:

Why You Need to Buy Life Insurance

1. Payment of final costs

Funeral and funeral expenses can easily reach tens of thousands of dollars, and I do not want my wife, parents, or children to suffer financially in addition to emotionally upon my death.

2. To cover children’s expenses

Like most caring and responsible parents, we need to make sure that our children are well cared for and can afford quality higher education. For this reason, extra coverage is absolutely necessary while the children are still at home.

3. Replacement of spouse’s income

If one parent dies while the children are young, the surviving foster parent will have to replace that income, which is essential to their lifestyle. The responsible surviving parent will have to hire help with household chores such as cleaning the house, washing, and cooking. Add to this equation if you are a single parent who helps with school work and takes your children to see a doctor.

4. To pay off debts

In addition to providing income to cover daily living expenses, the family will need insurance to cover debts such as mortgages so that they do not have to sell the house to stay afloat.

5. Purchase of shares of a business partner

In a business partnership, partners need life insurance for each other. The reason is that if one dies, the others will have enough money to buy his interest from his heirs and pay their share of the company’s debts without having to sell the company itself. They have the same needs (due to the risk of one partner dying) and at the same time have purchased life insurance for the other.

6. For payment of property taxes

Property taxes can be high, so having insurance to pay them is essential to avoid jeopardizing assets or funds set up for retirement. The use of insurance for this purpose is most common in large properties and uses permanent (rather than term) insurance to ensure that coverage remains for life.

7. To provide benefits for life

With advances in medicine and rising health care costs, people are living longer but can’t afford it. Life benefits are an option to use the proceeds of death before the insured person dies to help with obligations or needs to relieve pressure on themselves and others.

Best Life Insurance Policies

How much coverage should I buy?

Why You Need to Buy Life Insurance, The nominal amount or “death benefit” of an insurance policy (ie the amount of income paid to the beneficiary) must be high enough to replace the post-tax income you would have earned if you had lived a full life, assuming that you can afford the annual premiums for that amount. In other words, insurance replaces the income you did not have a chance to earn by living and working until retirement due to premature death.

Why You Need to Buy Life Insurance, The right amount of insurance allows your family to continue their lifestyle, even though your income is no longer available. The actual amount you need to buy depends on your current and probable future income, any special circumstances affecting you or your family, and your existing premium budget.

All life or term?

Why You Need to Buy Life Insurance, Some people prefer to drive a Cadillac, Lincoln, or Rolls Royce, which come with all the electronic gadgets that make driving safe and easy. Others prefer less personalized brands, as reliable as their more expensive cousins, but require more practical attention.

Why You Need to Buy Life Insurance, All life is a Cadillac of insurance; these companies try to do everything for you, in particular by investing part of your premiums so that annual costs do not increase with age. The investment characteristic of the insurance means that the premiums are usually higher than a similar term policy with the same nominal value. After all, all life insurance is designed to cover your entire life.

Why You Need to Buy Life Insurance, Term insurance, on the other hand, is temporary life insurance. There are no unnecessary investment premiums and no promises or guarantees after the end of the term, which can vary from 1 to 30 years. The annual term insurance premium is always lower than the whole life, without the investment component, but your premiums will increase (often significantly) after the expiration of the term.

Why You Need to Buy Life Insurance, Both types of life insurance, term or life insurance (or one of their derivatives) have advantages and disadvantages; both have their place depending on the needs, desires, and financial goals of the buyer. An experienced professional insurance agent can help you decide which type of policy is best for you depending on your circumstances. But whatever you choose, make sure you have enough coverage to achieve your goals in the short and long term.

The last word

Why You Need to Buy Life Insurance, Some people mistakenly believe that life insurance is a scam. This is because premium money is lost if death does not occur during the coverage period (in the case of term insurance), or because many people live to a ripe old age and continue to pay their permanent insurance premiums. Such skeptics compare life insurance protection to gambling and abandon protection altogether.

Why You Need to Buy Life Insurance, There are others who believe that life insurance does not help them. For these people, the answer is: You are absolutely right! The truth of the matter is that life insurance is a way for caring and responsible people to help ensure that their family can continue to move forward in the event of your untimely death, a really difficult time to lose. Of course, there is no bet – you will die, but no one knows when. It could be today, tomorrow, or 50 years from now, but it will happen in the end.

Do you have life insurance? Why or why not?

Why You Need to Buy Life Insurance, Carlton B. Finley is the founder and owner of CB Finley & Associates. He has been working in the establishment of an insurance agency for more than 10 years. The type of agency that focuses on training, explaining, and implementing plans and strategies to make people, families, and businesses make the most of their hard-earned money. In short, to achieve what he calls “helping people protect what is important to them” and making money in the process.

 

Author: Mribadol

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