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Why you need Life Insurance?

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jiten702
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Why you need Life Insurance?  Reply with quote  

The primary purpose of life insurance is to enable your family to continue their current lifestyle when and if you're no longer around. It is also designed to help meet specific needs that your family will have in the future.

If you have a life insurance policy in place, it could:-


  • Provide a financial security to your family
  • Help in paying your debts
  • Provide finances to your loved ones to achieve life's goals in your absence
Post Wed Oct 06, 2010 8:14 am
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EmeeQ
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These days, it's very crucial to be secured financially. You don't know what will be your tomorrow, moreover, when and where accident would happen. Thus, it's vital to have at least savings not only for yourself as well as for your family or loved ones. Life insurance is one thing that could help you on securing your finances. Even if you're no longer around, still your family would be secured financially, and that's the benefit that you would obtain from your life insurance.
Post Thu Oct 07, 2010 5:32 am
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pdx
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We should also differentiate Insurance from investment.
Post Tue Nov 09, 2010 11:23 pm
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wringle
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Why you need Life Insurance?  Reply with quote  

Many people wonder whether they require life insurance during retirement. Usually they do not. For one, the odds of dying at an older age is higher, and so also the odds of paying a higher premium on the life insurance.

One of the main reasons why people take out a life insurance policy is to ensure that their family members are taken care of in case of any eventuality. Also, life insurance forces a person to start saving or at times it works as a source of tax deferral. However, the latter two reasons are secondary in nature.

When a person retires, it is a foregone conclusion that they person is not depending on his job for his money. At a time like this, his financial needs are taken care of by retirement savings plans like 401k, IRA or Roth IRA. When you die, all your assets will be passed on to your surviving spouse via proper estate planning and making use of a will. If you are getting Social Security benefits, then your spouse will continue to receive them as a widow or widower.
Post Thu Nov 11, 2010 5:47 am
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Crazyfinances
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IF you have immediate family  Reply with quote  

Me and my wife took life insurance around 6 months after we got married. We were advised by her parents and we liked the thought. When we have an immediate family, which depends on us financially, we must get a life insurance.
Post Tue Nov 23, 2010 8:26 pm
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susiemartin
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Life insurance covers various risks in our life
so it is very important for us.
Post Mon Dec 06, 2010 10:07 am
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josht
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I always hear the argument that you buy life insurance, whether term or whatever type, in order to avoid the RISK associated with dying at an early age.

But that is untrue.

You are always at risk to die until you DIE. I don't understand why people would put themselves in a position to pay money to cover their risk of dying when they are YOUNG, and then get rid of that same coverage when they are OLDER.

You want to die with insurance no matter which way you slice it.

Something like 1 percent of people with term insurance, die with term insurance.

And what percentage do you think die with whole? Something like 10 percent.

Very low numbers. Doesn't make sense to me why you wouldn't want to die with insurance.
Post Mon Dec 27, 2010 7:38 am
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coaster
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quote:
Originally posted by josht
You are always at risk to die until you DIE. I don't understand why people would put themselves in a position to pay money to cover their risk of dying when they are YOUNG, and then get rid of that same coverage when they are OLDER. .

The risk of dying isn't the risk people insure themselves against. Funny you don't understand that. The risk that people insure themselves against is the risk of the loss of the deceased's income and the unexpected financial burden upon the survivors. In other words the risk of SURVIVING.

I think you also under-estimate people's abilities to make cost/benefit decisions with respect to life insurance. Old people drop their life insurance because the remaining risk isn't worth the expense. In other words, their survivors are no longer dependent on their income. There is no more risk to the survivors. At that point life insurance becomes a LUXURY, not a necessity.
Post Mon Dec 27, 2010 4:18 pm
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oldguy
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quote:
You want to die with insurance no matter which way you slice it.


Why would you think that? Life insurance should be called 'income' insurance - young earners buy it to provide for their dependants at their accustomed level thru college, in the case of tragedy - ie, it replaces the decedent's 'income'.

Conversely, a retired person has no salary to insure - and usually no minor dependants to support - so the requirements are gone - no need for life insurance. (I have no life insurance.)
Post Mon Dec 27, 2010 6:06 pm
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financegenie
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Asset Protection:-
The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings:-
Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Post Wed Dec 29, 2010 6:21 am
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Esmay00
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All anyone would want is to secure their family financially. Life insurance does this. It helps you to ensure that your family is financially secure at all times.
Post Mon Feb 07, 2011 6:41 am
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jeffreymint
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Life insurance has become a need. It is a necessity of some sort that we all have to get for ourselves and our families. It can help us in many ways and support our need when tragic times are at hand. We tend to take it for granted. It is good though that many has been aware of the good points of having insurances. I do see it too.
Post Mon Feb 07, 2011 4:12 pm
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MrPolarZero
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The thing with life insurance is that it often make people a bit too paranoid about dying young. However, I do still consider it rather essential in order to secure your loved ones, in case you do finally go over to the other side.
Post Tue Feb 08, 2011 3:27 am
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Jameslary
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We need need life insurance because we have dependents who would be in a struggle if we were to pass away. Life insurance can help protect your loved ones and insure them with financial security!
Post Wed Feb 09, 2011 6:28 am
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