post Category: Life Insurance post postFebruary 4, 2008

Some people consider a sound life insurance program a vital part of their financial planning, while others wouldn’t buy life insurance if it cost only 1 cent per thousand. That, of course, is a personal decision. There are some very important things to keep in mind when making the decision to buy or not buy life insurance.

One Thing We All Need To Understand About Life Insurance

There is no other financial planning vehicle that can create an instant estate like life insurance.

Let’s assume for a moment that you are an “average American”:
  • Married
  • 2 1/2 Kids
  • $ 150,000 Mortgage
  • 2 Vehicles
  • Lot of credit card or other debt
  • Make $ 50,000 per year
  • $ 50,000 group life insurance where you work

 



Now let’s further assume that you are killed in an auto accident on the way home from work. What financial impact does your premature death have on your family?

Well, right up front, since you only had $50,000 in life insurance and you produced $50,000 in annual income, you left your family exactly one year’s income.

Would you be comfortable with that situation?

Discount Dental Plans Under $20
Nationwide Dental Plan Provider Network. Savings on both preventative and restorative dental services. Savings on prescription drugs, vision care, and chiropractic care.

Discont Health Plans Under $60
Nationwide Healthcare Network. Healthcare savings for your entire household under $60 per month.

So, Why Do We Buy Life Insurance?

  • First of all, we buy life insurance to pay our final expenses which not only include a funeral service and all associated expenses, but final expenses may also include medical expenses not paid by health insurance, probate costs, attorney fees and other expenses involved in a person’s death.
  • We buy life insurance to guarantee that our family can maintain the standard of living we have worked so hard to establish for them.
  • We buy life insurance to guarantee that our kids have the right to choose further education beyond high school.
  • We buy life insurance to retire the mortgage.
  • We buy life insurance to pay off debt.
  • We buy life insurance to guarantee a continuing source of income for our family.
  • We buy life insurance to guarantee the continuation of our business without any interference from a deceased partner’s spouse or other relative.

So, whether you are thinking about buying term life insurance or permanent life insurance, please understand, there may be a need for both in your insurance program.

 

Other Insurance Maze Articles of Interest

Glossary Insurance Terms: |A-C|D-H |I-M|N-P|R-T|U-W|

Google
 

Auto Insurance | Business Insurance
Health Insurance | Home Insurance | Life Insurance
Site Map | Insurance Maze HomePage
Insurance Blog Policies

Work At Home-Healthcare Industry-Start Part-Time!
Work from home and create a substantial residual income by helping others manage their healthcare needs. Excellent commissions and get paid daily.

Insurance For Tennessee
If you live in or are relocating to the great state of Tennessee, we can help with your insurance needs: Auto, Home, Life, Health or Business.

Start Your Blog and Make Extra Money!
Members of AmPmInsure.Org are learning how to create fantastic blogs and are making extra income. FREE Blog - FREE Instructions - Can’t get much better than that!

Technorati Tags: , , , ,

Share and Enjoy:These icons link to social bookmarking sites where readers can share and discover new web pages.
  • digg
  • Ma.gnolia
  • NewsVine
  • Reddit
  • YahooMyWeb

Sorry, no comments yet.

Write Your Comment

Comment Guidelines: Basic XHTML is allowed (a href, strong, em, code). All line breaks and paragraphs will be generated automatically.

You should have a name, right? 
Your email address, I promised I won't tell it to anyone. 
If you have a web site or blog, you can type the URL right here. 
This is where you type your comments. 
Remember my information for the next time I visit.