Is life isurance important?

Question

life insurance costs less than most car insurance yet people think of it almost like a luxury as opposed to a necessity. as soon as i found out i was pregnant i inquired about life insurance and now i have it. i want him to be provided for if i die. i am not going to leave the responsibility to someone else for seventeen years. i am young and healthy (23). i would that more people started viewing it as it should be. i know people who have a time share but not life insurance and they either have debt and/or children. i am not venting i really want to know how to turn things around. i take life for granted too but people are dropping like flies and in the news and stuff even at young health ages.

i am unsure if i am wrong in my beliefs or if life insurance is important. i see it like this we pay into car insurance at least $1000 a year so why not life as well.

Answer 1

Sounds to me like it really screwed you in this deal. Maybe you could get good luck here.http://health-insurance.online-tips4u.in...

Answer 2

I'm a financial representative and providing life insurance is one of the things I do for clients. God forbids if the breadwinner dies, where would the family be without life insurance? Life insurance can't protect you against harm or death, but it can replace your income. The problem is that many families that own life insurance don't have adequate coverage, but they pay lots of premiums for it. That's because they own the wrong type of life insurance. Take a look at the facts and you decide which product is the best:

Whole life insurance

1) Its level term to around age 100 that builds cash value.

2) Since it builds cash value, premiums are higher than term insurance that doesn't build cash value.

3) There is no cash value growth in the first 2 years because premiums are used to pay for the insurance and commissions to the agent.

4) After first 2 years, you are guarantee a rate of anywhere between 1-4% (varies between companies)

5) If you wish to take money out from the cash value, you have to borrow it and pay loan interest of 6% to 8%.

6) If you die someday, the insurance company keeps your cash value, but pays the death benefit. Death benefit will be reduced by any loans you taken from the cash value.

Universal life insurance

1) Annual renewable term until around the age of 100 that builds cash value.

2) Flexible premiums as long as there's enough cash value to pay for the insurance.

3) While premiums may remain level in the beginning, the internal cost of the insurance goes up every year. That means less and less of your premiums goes into the cash value. Eventually, the premiums you pay will be insufficient in the future to pay for the cost. What would happen is that you would either have to pay more premiums or a portion of your cash value will be used to pay for it.

4) Same cash value features as whole life.

Term insurance

1) Various of level term products to choose from (from 1 year to 35 years).

2) It does not build cash value, so premiums are initially lower than whole life and universal life.

3) Most term insurance are guaranteed renewable to around the age of 95 to 100 without providing a proof of insurability. If your health was to decline because of old age, you can renew your policy without any hassle.

4) When you renew, premiums will be based on your current age. So premiums will go up after the initial level term.

Those are the facts.

Personally, I have sold term insurance 100% of the time. Why? Its because my clients can get lots of coverage for low amount of premiums. Since premiums are low, I help setup investment accounts for my clients so that they can build wealth. If you had lots of money saved right now, would you still need life insurance? Probably not. But you probably don't have lots of money saved right now and if something were to happen to you, would your family be financially ok? As you get older and continue to invest, you may or may not need life insurance when it is time to renew the term insurance. If you were to invest $200/month for the next 30 years and the average rate of return in your portfolio was 12%, you would have about $700k saved for retirement. That's probably not enough to live on, but at least its better than having money sitting in a life insurance policy. If you were to die during the term, your family gets the death benefit and all your savings and investments. If you die after the term, at least you will leave money behind to your family. With the cash value life insurance, in most policies, your beneficiary will only get the death benefit, but the insurance company keeps the cash value.

Answer 3

Unlike a car, where someone knows they have to replace it over time.  People feel as though "it will never happen to me".

Also, most people have some type of life insurance provided through there employer.  It is a minimal cost, because life insurance is basically pooled risk.

Now, it is great that you have life insurance.  What type?

Term, Variable, Universal Variable, Whole life, etc?

I believe this could be a reason people don't have it, is because it is not really understood.  Not only that.  But life insurance agents, make really good money on "selling" policies.  So alot of people resent that as well.

Kudos to you!  And congratulations on the pregnancy, I hope things go well for you.

Answer 4

Good for you.

Life insurance is in reality "Love Insurance". People buy life insurance because they love someone and want to see that person, or persons provided for in the event of untimely death.

A lot of uninformed people think of life insurance as "death" insurance. But that's far from the reality of what it actually is. Life insurance isn't for the dead; it's for those who are living, and were financially dependent on the person who died.

A story is told of two young neighbor boys who were out playing one day. They began talking about their dads, and what their dads do for them. "Johnny" told "Billy" about all the things his dad had done, and even bought him a new bicycle. Well, "Billy" told "Johnny" that his dad loves him, and about all the things his dad had done for him, and that his dad buys him presents all the time. "Johnny" said to "Billy", "Your dad can't love you like that because he is dead". "Billy" said to "Johnny", "My dad may be dead, but he loves me and my mom so much that he still sends us a check every month".

That's Love Insurance.

Best wishes, and God bless.

Answer 5

yes it is bcoz it give protection to ur family

Answer 6

Your reasoning is spot-on.  Life insurance is to provide sustenance to those who depend upon us for financial support.  Life insurance provides this support if we die before their reliance/dependence upon us ends.  In the past, life insurance was (primarily) a product marketed to men since they were (traditionally) the 'bread winner'.  Those days are over.  We are a culture of two-income families and life insurance is important for women also.  Once your children are grown and independent, depending upon your individual situation, you can reconsider the need.  In the meantime, be sure you don't get 'sucked in' to regular or 'ordinary' insurance.  Rather, purchase a 20 or 30 year term policy.  The cost will be significantly lower.

I applaud you!  Good luck!

Answer 7

I agree with you 100%. People don't want to think about the fact that they could die, they think it's morbid to buy life insurance. But as you pointed out, in reality, people die everyday in accidents and leave their families in a pool of debt. Just think about having to pay for funeral costs, much less in the long term such as mortgage, utilities, and college for your children! My husband and I both have it so our girls will be provided for if something would happen to one of us.

I would also suggest you go a step further and buy life insurance for your child, too. Now many people do think this is very morbid and won't even think of doing this, but I think its a no brainer. For example, I live in a small town and just last week, a 2 year old girl was killed in a auto accident. The town is having benefit after benefit and an account has been set up at a local bank to help this poor family pay for funeral costs. Can you imagine losing your baby, then having to worry about money? I can't, that would be the last thing I'd want to be worrying about. And I know that I wouldn't be able to go back to work for a very long period of time if something happened to one of my babies. I would want to return to work when I was ready and because I wanted to, not because I had to in order to pay bills.