Is Life Insurance Needed?

No one has made a contract with God that they won't get sick. Most people are aware that life can be unfair and that being financially comfortable today doesn't guarantee being comfortable in the future. It may all come as a result of a sudden death. Anything is possible for anyone, but what about the insecurity that will knock on your door and will deprive you from your goals and dreams?

It is a fact that some people think they don't need life insurance because they assume enough money by the time a death occurs in the family. However, this assumes either that the time of death is predetermined or that the family will have sufficient funds at any given time to pay for any expenses related to an unexpected death. The first challenge that arises from this perspective is related to the cost of life, which increases from year to year while income levels remain stable. Therefore, a family that depends on job income to live will certainly not be able to afford the expenses of a sudden death.

Life insurance provides enough coverage and assists a family to anticipate financial burdens should a death occurs in the household. Although, people don't like to think about dying, loved ones should be protected and their financial future has to be taken care of.

Life insurance offers security and protection. There are people that believe that the monthly cost of life insurance is excessive and that premiums are paid for no reason if the unexpected event never occurs. It is a fact that insurance money seems wasted if insurance policy is never used. It is also true that it may exceed the cost of life thus burdening the family's budget even more. However, there is no guarantee that this will be the case. Death is inevitable and unpredictable. Wouldn't it be better for the family to have a large sum of money at hand?

Life insurance works for single people as well. A low-risk life insurance would cover funeral costs; at the same time you can invest the premiums you would have paid should you had a high-risk insurance. In that sense, life insurance is a wealth optimizing tool. It can provide liquidity to pay off personal or business loans or good returns on investment, which could be a beneficial way for saving necessary funds for retirement years.

If still you are not convinced that we need life insurance ask yourself simple questions. What immediate financial expenses will your family face upon your death? How long would your dependents need financial support? How much would you want to leave behind to fund your children's education? Would you want your family to be financially doomed because of your sudden death?