How Does Life Insurance Provide Financial Security?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    If you were to die today, how long would your savings last?  How would your family pay the bills without your income?  Who will pay the debts you leave behind?  Life insurance provides the peace of mind and security in knowing that your loved ones will be able to continue on without you.  They can stay in their home.  Your child can go to college.  Your final expenses will be taken care of.  Even if you have a sizable estate, life insurance can be a means of helping to preserve that estate.  It can hep make sure your business will continue until it can be sold.  It can provide funds for a business partner to buy out your share of the business when you die.  It avoids probate and creditors, unlike other savings vehicles.  It provides an immediate estate.  This is financial security!
    Answered on July 2, 2013
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  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I know that there are financial advisors out there that will tell you that life insurance isn't necessary, but let's assume that you are not one of the 1% and don't have a big pile of money lying around. Life insurance can provide financial security in a couple of ways. At the very least, it can cover your funeral expenses, so your family isn't left passing the hat before you can have your service. It can provide for an income to replace what your spouse and kids will lose when you are no longer there to provide it. How long would your spouse be able to keep up payments and put food on the table without your income? The Government Social Security payment of $255 wont last very long. Some policies are used to protect against the big expenses in your lives - mortgages, college, etc. If you were to pass with that expense unpaid, the insurance pays it, and your spouse and kids aren't leveled by that bill. There are also types of life insurance that over time can generate large sums of cash value, that can be used for emergencies or for a supplemental income during retirement. These are nothing compared to the peace of mind knowing you've protected your family, and loved them through your financial planning for them. If you'd like help, please contact me, I'll make time for you. Thank you for asking!
    Answered on May 15, 2014
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