Why would you need life insurance? The best person to ask that question to is your spouse. Your children. Your church. Your business partner. Your employer or employees. Your lender.
Life insurance is for those who are left behind. If a person's passing would not cause a financial hardship for anyone, if all their debts were paid and they had left all to charity that they desired, they would not need life insurance.
What I have found is, it is often a matter of perspective. Ask those who matter to you, and you will get your best answer.
Life insurance is a mortality product used in three financial planning scenarios: indemnification, income and inheritance. If you have financial liabilities, future obligations or you have charitable or legacy intent for your family members or business partners you need life insurance. If you have a need for tax advantaged retirement income, then you should consider life insurance.
Financial Representative, Western & Southern Life, Kokomo,IN
I must echo the words of Peggy! One would need life insurance to insure the financial survival of those they leave behind. There are various different types of life insurance and I recommend finding an agent that you trust and can communicate well with to personally review your situation, often people will search the internet and either buy to much or not enough coverage. Just make sure you can trust your agent to have your best interest in mind!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The only reason to have a life insurance policy is because you owe money or you love someone. The debt part is easy as many creditors require that you carry life insurance to repay the loan should you die prematurely. The love part is really basic. If you don’t care, then don’t buy life insurance. It might have some investment benefits but ultimately it is designed to ease the lives of those who will suffer when you pass away.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
The reasons and needs for a person to buy life insurance are as varied as there are people! If you need a secure investment that returns a guaranteed minimum interest rate that isn't taxed; if you need to provide a financial legacy that won't be taxed; if you need a fund that you can tap into at will without being taxed on it and that will continue to grow even as you use the money... These are just a few reasons you might need life insurance. But i each of the cases cited here the type of insurance you need is Whole Life - not Term, not Universal.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why would a person need life insurance? Well I guess it depends on the person and what their needs and wants are. For most everyone when they pass, someone has to take the time and expense to handle their service, take care of their debts and maybe continue what they planned for family. The basic need for life insurance is to help those you leave behind deal with what you've left behind.
Why would a person need life insurance? Well just imagine you had an ATM in your house or business. No fees to withdraw money as long as the ATM was present. Once the ATM is removed the money stops. Now your source of money comes from an outside sources that causes fees, stress or headaches. Your cash flow slow downs drastically due to the difficult nature to find another ATM. With many other people already using their own ATM's its even more difficult to borrow from them as well. In essence, this ATM represents your spouse, business partner or church. Nonetheless, these people relied on your income to keep them afloat. Its important when you are no longer their "ATM" that you keep your family or business protected. Life insurance becomes a virtual ATM and life can still move forward financially even in one's absent.
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Life insurance is for those who are left behind. If a person's passing would not cause a financial hardship for anyone, if all their debts were paid and they had left all to charity that they desired, they would not need life insurance.
What I have found is, it is often a matter of perspective. Ask those who matter to you, and you will get your best answer.