Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
This is a very common question people ask and a good one at that. There are many great uses and protections that life insurance offers. The most common reasons why people buy life insurance are to pay off debts (e.g. a mortgage, cars, credit card debt, burial expenses, kids' college educations, etc.), estate planning, and/or income replacement in the event the insured dies. People also get life insurance for business purposes as well such as collateral for a business loan from a bank, key-man programs, and buy-sell agreements.
The idea of life insurance is to create a ton of cash upon the death of the insured. You protect yourself/your family financially in the event of a catastrophic event by pooling the risk and shifting it to a third party (the insurance company).
A great question to think about is "if I died tomorrow, would my family be financially sound without my income?" - For the vast majority of people, the answer would be NO. Not only is determining whether you need life insurance important, but how much coverage do you need and for how long.
I always recommend consulting with an experienced broker to help you determine the appropriate benefit structure that's going to be the most suitable for your needs and your budget and to help you secure it through the right carrier. Please let me know if I can be of further assistance. Thanks very much.
There are several reasons to have life insurance. Some of the main reasons are:
1) Your family depends upon your income for bills, mortgage, living costs, etc... and if you were to die they would not be receiving these funds any more.
2) You want to leave some money to your children or another person that can't be taken by your creditors after you die.
3) You want to leave some money to a charity or organization that you care about.
If these or any other reason apply to you, speak to a local insurance broker and they can determine the most cost effective way for you to do this.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
You only need life insurance if you either love someone or owe someone. There are business applications that view a human as a cog in the machine but these are the principle reasons. Premature death is a terrible thing. Who will suffer if your die prematurely? How else can you ease them through that painful experience?
That is a great question! If you are very wealthy and can afford to cover your funeral expenses, leave an income for your surviving spouse, and somehow pass a chunk of your estate tax free to people that you leave behind, you really don't. Seriously, if that's not you, and one or more of those things would be difficult, or impossible to do, then life insurance is a good thing for you. If you would like help finding a policy, please feel free to contact me, I'd be happy to help. Thank you for asking!
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The idea of life insurance is to create a ton of cash upon the death of the insured. You protect yourself/your family financially in the event of a catastrophic event by pooling the risk and shifting it to a third party (the insurance company).
A great question to think about is "if I died tomorrow, would my family be financially sound without my income?" - For the vast majority of people, the answer would be NO. Not only is determining whether you need life insurance important, but how much coverage do you need and for how long.
I always recommend consulting with an experienced broker to help you determine the appropriate benefit structure that's going to be the most suitable for your needs and your budget and to help you secure it through the right carrier. Please let me know if I can be of further assistance. Thanks very much.
1) Your family depends upon your income for bills, mortgage, living costs, etc... and if you were to die they would not be receiving these funds any more.
2) You want to leave some money to your children or another person that can't be taken by your creditors after you die.
3) You want to leave some money to a charity or organization that you care about.
If these or any other reason apply to you, speak to a local insurance broker and they can determine the most cost effective way for you to do this.