What are 4 major benefits of life insurance?

Answer 1

The four reasons for life life insurance:

1) It should be thought of as a temporary evil. By this I mean, that a family should be insured for a certain period of time- you have a couple of kids ages 5 and 3. You also have a mortgage with 26 years to go. Instead of having a whole life policy, you should be considering 30 year level term. with family banding- instead of several policy fees pay one policy fee to cover the entire family, including kids.

2) As someone young in age, you may not have enough assets to cover the family for 10 - 20 years should primary bread-winner die. The insurance will replace income that was lost.

3) You can be saving for retirement and/or college education, even both, if a plan has been put together with you and your familiy's wants and needs first and foremost.

4) Before any plan has been started, your family completes a financial needs analysis for you at no charge. This will tell you your net worth, how much you will need to save for a comfortable retirement, it will show where your money is goiung each month and then set up a plan to get you out of debt as fast as possible.

Answer 2

There are many different types of policies that are available. The simplest ones provide income in case of an accidental death and provides income to the policy's beneficiaries. There are others than can be used to build income for retirement so that you do not have to die to gain a financial reward. Insurance in a very unique financial product and there are many ways that a policy can be a source of financial freedom in one's life; it should not be thought of as something that is purely something good to have in the event of an unforseen tragedy, although that is it's primary use.

Answer 3

1) It offers the individual peace of mind, knowing that his/her family will have that financial "safety net"--especially if the insured is a bread winner in the family.
2) It will ensure that one's family is not subjected to unnecessary stress trying to cope with less income, paying for a funeral, or dealing with one's creditors.
3) It allows the family to pay necessary expenses.
4) It can help when one is attempting to get a loan.

Answer 4

Death and Taxes are certain

1. Pay off funeral expenses

2. Pay off mortgages, debt, loan and credit cards

3. Pay off child education (for those who are married)

4. Pay off estate duty ( to preserve wealth)

Life insurance also pays when a person is permanently disable : Higher medical cost !

All you need to do is to pay the monthly premium.

How long does it take to save 500,000? 1 year , 10 years? or a lifetime? But 1 untowards incident can wipe off a person wealth.

Answer 5

There's only one if you're the insured... you die and your family gets money. Otherwise all the benefit is for the insurance company.

Answer 6

1) A way to pay your funeral expenses when you die;
2) Money to pay other bills that might become the responsibility of your family (mortgage, etc.);
3) Money for college for any dependents you have;
4) Peace of mind for you and your family.