Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance demonstrates that you love someone else. If your death is going to have an impact on someone you love, then life insurance can help (perhaps a great deal.) Sometimes life insurance is required to protect the interest of a lender or a contract holder (who you might not love.) In the end, though, most life insurance is purchased because people love each someone else.
This is an age old question. The purpose is the need you are needing to fill. Remember the death benefit is a tax-free benefit which provides the financial resources to provide for many needs. From the simple, protecting your family from lost income, preserving your way of life to protecting a company from the loss of a business owner or key employee. Peggy and Dave list out great reasons defining the purpose of Life Insurance.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
The original purpose of Life Insurance - the reason it was created is to transfer the risk of a person dying too soon from that person and their loved ones to the insurance company. Generally if a person dies while still having debt or not having enough money to care for their heirs, that person has "died too soon". In a lot of people's opinions dying at any time is too soon! But that's a philosophical consideration.
Over time Permanent Life Insurance has come to play an important part in the financial well-being of insureds while living. Term insurance on the other hand remains solely for the purpose of insuring against a person dying too soon. Peggy listed a number of uses for Permanent Life Insurance, and I would add that the cash value of whole life insurance is a terrific asset for use in personal banking applications. For more information see https://www.linkedin.com/pulse/what-characteristics-whole-life-insurance-stan-cox-ii?trk=prof-post
.JPG){kind=avatar}
Over time Permanent Life Insurance has come to play an important part in the financial well-being of insureds while living. Term insurance on the other hand remains solely for the purpose of insuring against a person dying too soon. Peggy listed a number of uses for Permanent Life Insurance, and I would add that the cash value of whole life insurance is a terrific asset for use in personal banking applications. For more information see https://www.linkedin.com/pulse/what-characteristics-whole-life-insurance-stan-cox-ii?trk=prof-post