Who needs insurance - rich or poor?

Question

Who really needs life insurance Rich or Poor people ? Poor cannot afford it and do rich require?

Answer 1

Everybody needs life insurance, particurly people who are not wealthy. Everybody can afford life insurance, just that majority of people don't know that they can because they keep spending all their money on things that have no use.

Lets say you are married. You live in a home and pay about $900/month into your mortgage. You have 2 kids. You have 8 credit card bills totalling around $20,000. Your annual income is $20,000 while your spouse makes $15,000. If something was to happen to you, would your spouse be able to maintain the same standard of living? Of course not. She will probably have to sell the house and rent an apartment. The credit card debt will follow her everywhere until she dies. If you reverse the situation, then you going to get stress out and worry about what to do. That's why majority of people need life insurance.

Wealthy people usually don't need life insurance. If they do, that's because they notice a potential short fall in income that can affect the family.

Life insurance should only bought for one reason: For protection of income and be able to maintain the same life style when a love one dies.

Answer 2

It depends. More poor people buy insurance because a loss of income to a poor family would be devastating. Wealthy people really don't buy insurance because when you're wealthy and have investments in place and are living off interest of your investments, then the income is not lost if a spouse dies. All insurance does is protect a loss of earned income not a loss of life. A rich person would only need life insurance if they own a business or they have insurance on a key employee. If a spouse can't run their partner's business alone, or if an employee's death would be devistating to your business, then a rich person would purchase insurance.

Answer 3

The poor may need it more than the rich. What it comes down to is exactly this - "What are your life insurance needs?"

Rich people may have investments and assets that will remain with the family through a trust if someone should die.

The poor may have greater financial difficulty if the sole income earner passes away.

It isn't necessarily how much life insurance but the actual "need" for life insurance protection. I believe it would be the poorer family who needs it the most.

Hope that helps!

Answer 4

If you were a rich person and your house was worth 3 million dollars would you pay 10,000 dollars to insure it of course you would because rich people get rich partly because they under stand the value of money in this case it is cheaper to let insurance company pay to rebuild house than to use your own assets.If you were poor you could not afford to rebuild without insurance the answer too your question is both need insurance.Life insurance can pay to bury someone or it can help rich people pay estate taxes on the estate that they pass on to relatives at the time of ones death.

Answer 5

Middle income people need it the most. They have assets they might lose if they have an uninsured loss.

Rich people can always pay for their losses. Poor people can always get some sort of help and they have no assets to protect, but middle income people don't have a lot of money and debtors will take everything they own if they have an accident or illness with no insurance to cover it.

Answer 6

Well, most of the middle class that become poor do so because of uninsured medical events. So the middle class needs it to not become poor, and the rich need it to shift the costs to everyone who is insured, so the poor (who have access to free medical care in the US) are the ones who need insurance least.

Answer 7

Both! The main purpose of life insurance is to cover the survivors of the person who dies. Life insurance can be used to pay off debt, cover burial expenses or take care of surviving children. Life insurance can be very important, especially if you are leaving a spouse that doesn't work, young children, or debts. In the event of your death, the life insurance company would award the amount of the policy to your beneficiaries. Most people buy life insurance to replace income that would be lost if a wage earner passed away. Life insurance proceeds are tax-free, so it can also play a role in estate planning, cash accumulation, retirement funding, and the transfer of wealth to beneficiaries. There are many types of life insurance on the market today. The cost of a policy and features it offers vary depending on the type of insurance you choose.

Answer 8

The 'need' for life insurance does not always arise as a result of one's wealth. Many poor people do not need any life insurance if they do not have anyone who depends on them. Many wealthy people do not need any life insurance because they have created enough wealth to sustain themselves and their dependents.

Many poor people need life insurance to create the wealth that their dependents need when a breadwinner passes away. Many wealthy people need life insurance (properly structured) to handle their estate tax bill that comes due when they pass away.

This is a complicated question not easily answered with a uniform answer for everyone. Go talk to a licensed insurance professional to get a clear picture.

Good Luck

Answer 9

I feel that poor people need it more than the rich. I mean, when it all comes down to it, rich people could pay for their medical bills a lot faster than the poor.

Answer 10

How about rich and poor need insurance.