Why Would Anybody Need Life Insurance?

The earliest known practice of insurance is thought to have first occurred in ancient civilizations. When a natural disaster struck a particular village, survivors would pool together their resources to help rebuild their neighbors’ homes. In today’s complex, income-driven society, we are no less exposed to uncertainty than those men and women who lived thousands of years ago. And yet, human life, however much it is valued, is often taken for granted, and in many cases, is inadequately protected against life’s uncertainties.  That’s where life insurance comes in.

Human Life Value

Unlike most tangible assets, such as cars, homes, and other property, the value of human life is unique, because it can also be measured in terms of its future earnings potential. In short, human life may be looked at as an income-producing asset—one that produces income to pay your mortgage, maintain your current lifestyle, build an education fund for your child, and systematically help you save for retirement. Should this asset suddenly be taken away, it may create an economic void that could be very hard to replace.

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Life insurance is the most cost-effective method of meeting any or all of these economic needs. Life insurance can help create a fund your family can fall back on should you suffer an untimely death. By paying a premium for a life insurance policy, you are pooling your assets with a large group of similar policyowners. This financial pool is managed by a life insurance company in order to pay death claims. Pooling these premiums makes the cost of life insurance lower for everybody.

Bear in mind, there are different kinds of life insurance policies that can be tailored to fit individual needs. Therefore, it is a good idea to review your personal goals and objectives with your insurance professional. With the proper life insurance plan in place, you can help solidify your family’s future

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As always, you can consult with me to discuss your personal situation.

Look for future posts on the best ways to grow your assets  and check out my recent post on is life insurance taxable?

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