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Life Insurance - Why We Buy Life Insurance

Mar 23, 2008
Why do people buy life insurance? We work hard for a living. Sometimes the income earned affords us a comfortable life. In other cases we just barely make ends meet. Why then should we purchase a product that pays when we die? In some cases these policies are bought because it is simply common sense to protect our families or a possibly a business. In other cases it is a matter of passion. It is a deep desire on the part of a parent or spouse to protect surviving family members.

Young Married People

It seems obvious why young married people would buy life insurance. You have just said "I do". You are burning up with a deep passion for your mate. You want the best for your partner. You feel a powerful need to protect your spouse. You have provided the house, food to eat, nice clothes and you are having a grand time. You have a truly fulfilling life and you never want it to end. What if you should die? Your absence will hurt but you surely want to be assured your partner doesn't need financially. You therefore buy life insurance to guarantee that the spouse you love won't lose everything as a result of your death.

If the partner is good at handling money you leave a lump sum. If you have your doubts you provide an income.

You later have children. When you see that beautiful child you feel something that you were not aware that a human being could feel for another. You feel a kind of love that have no words to describe. You don't think of it at that point but sometime in the near future you know you must buy some life insurance to guarantee the financial future of that child. As s/he grows up you know that you want this child to be secure. You know you want a college education to be guaranteed. You save for these things but you need to be assured that the funds will be there even after your premature death.

Later Years

The children are now grown. You have put them through college and they are doing just fine in whatever fields they choose. You and your partner for life continue enjoying life. You have these policies you bought to protect the family in the early years. Should you keep them? Yes you should as you still want to guarantee your spouses financial security. Even if you have accumulated great wealth you still need to keep those policies as something new comes into play. I refer to Estate Taxes. A good chunk of your estate will go to the Federal Government. Life insurance can be used to offset the Federal Estate Tax.

Business Owners

People who own businesses have powerful reasons to buy life insurance. Whether you are a sole proprietor, have a business partnership arrangement or are a shareholder in a closely held corporation there is always a need for life insurance. A good policy from a good company can guarantee the continuation of your business.

More on business continuation: http://www.lifeinsurancehub.net/businesslifeinsurance.html

For a look at needs go to: http://www.lifeinsurancehub.net/life-insurance-needs.html
About the Author
About the Author: For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has carefully studied the work of all of the greats from Ben Feldman and Frank Bettger to Joe Gandolfo. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: LifeInsuranceHub
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