Life Insurance.... Do we really need it? I have the answer now.
By acosjo
@acosjo (1903)
Canada
December 7, 2006 10:57am CST
Yes we do. Why? I used to think life insurance was stupid until someone showed me what it's function really is and how it financially makes sense.
People think it is a way to make your loved ones rich if you pass away. But that is not the case.
It is actually replacing a person's financial contribution. Also, they showed a real life situation where if a husband (for example) were to pass away, the wife will continue on living. If there is no insurance, she will have to use 1) her income to continue to pay bills etc. 2) may have to liquidate (sell) savings, investments etc in order to keep paying the bills. Why would you want your spouse to lose savings, investments? Life insurance will make sure your loved ones continue to life the same life and not have the burden of money, especially when they have to deal with the passing of a loved one.
Plus, the amount you pay in premiums doesn't even come close to the benefit you would receive (would you say no if I said to you, give me $5 and I'll give you $1000?).
Your life insurance policy will pay at some point.
What do you guys think?
5 people like this
48 responses
@gaylordfocker615 (389)
• Philippines
8 Dec 06
I do not believe in life insurance. First of all, insurance companies try to weasel out of their commitments with the tiniest of loopholes in their insurance contracts. Second, life insurance becomes a source of "evil" when a couple's relationship goes sour. Thirdly, I believe that everyone should work and not be given a freebie just because you die. There are plenty of other ways to financially support your loved ones (if you have to) when your gone. That's what bank savings and other possessions are for.
Life insurance companies are making a killing (pun intended) by using money that they don't own and are banking on the fact that people will want to leave their loved ones something when they pass on to the next life. Their earning much more than what they are shelling out. If this weren't true, there wouldn't be a plethora of insurance companies doing business today.
This is just me :-)
1 person likes this
@slcsindia (116)
• Chennai, India
8 Dec 06
Not only that. Atpresent, the percentage of Private employees is more. So financial security for them is limited.they don't have any benefit of pension. But the LIC introduced some Policies by which the private employees can get the monthly pension not after thier retirementat the age of 60yrs. but from 45yrs onwards. And so many policies through which they can save for thier future.
1 person likes this
@milott (2646)
• India
8 Dec 06
All these points stand valid if and when the insurerer passes away in the middle, yes i agree if it happens and it will definitely be a boon for the family which don't have to sell savings, etc. But what if the person insured (family's head) still lives till the end of insurance policy lapses, then I don't think it is a good investment option as there other ways to make your money grow like shares, mutual funds which almost doubles or triples your money!! If you think insurance an investment option alone, it is not wise but if you think that if something happens to you then you should have insurance. Overall I feel that everyone should safegaurd themselves with insurance then go for other investment options if they have enough money. If you want to get insurance as an investment purpose only, there are plans which invest your money in stocks, which is called unit-linked plans, you can go for that.
1 person likes this
@vikrant_1980 (275)
• India
8 Dec 06
very right.. I completly agree with you ..insurance is absolute necessary for salried persons...
1 person likes this
@nirav26 (31)
• India
8 Dec 06
nsurance is a must also because of the uncertain future adversities of life. Accidents, illnesses, disability etc are facts of life which can be extremely devastating. Other than the hospitalisation, medication bills these may run up it’s the aftermath of the incident, the physical well being of the individual that has to be taken into consideration. Will the individual be in a position to earn as before? A pertinent question. But what if he is not? Disability can be taken care of by insurance. Your family will not have to go through the grind due to your present inability
1 person likes this
@shoelover (896)
• Australia
8 Dec 06
Life insurance is a must. Both my hubby and I are insured. If anything were to happen to me my husband would even have a carer for a few years as that too is taken care of. If anything ever happens to my hubby I too would be taken care of. Our children will be better off financially also if something were to happen to both my hubby and I they would be secure.
@tisha4you (278)
• United States
8 Dec 06
Life Insurance.... Do we really need it? Not really..if you are investing your money somewhere else..then its fine...
@acosjo (1903)
• Canada
8 Dec 06
This is where people are wrong. Why would you want to collapse your invetments. It doesn't make sense to do that when you could spend a little money, get a benefit the same size (or in most cases probably larger) than your invetments and use that money to continue to live, pay bills, pay off debt etc.
1 person likes this
@shrutisingh (186)
• India
8 Dec 06
i think life insurance makes a lot of sense.the situation you talked about is the real actual example of it's use,my brother in law just passed away and he did not have insurance,so now the wife hast struggle to keep going on....funny comment on life insurance is....buy life insurance ,die rich..
@TerryZ (22076)
• United States
8 Dec 06
Yes you have to have. I never though about it when I was younger, because you thing I will never die. How stupid it that? Now that I have matured I think alot differently. You dont want to put the burden on your love ones.
@himalaya (39)
• India
8 Dec 06
Absolutely right. There is no way in which we can ever make up for the loss of our life, or that of our dear ones. But we always want to see our family, wife, children safe and secure even when we are gone!
More so, life insurace with all their variety of policies, make more sense not just from the point of view of taking care of the future in some manner, but also a smart financial investment sense, tax planning.
Im always one for life insurance, accidental insurance.
@durgakrishna000009 (32)
• India
8 Dec 06
s insurance is the best way of saving money it has the advantage that our family members can fulfill their needs and its the most secrity for us. I think its the best way and we can enjoy the benfits like loans,houses etc.its a great policy
1 person likes this
@rubypatson (1841)
• India
8 Dec 06
iN iNDIA we all go for it mostly to avoid paying the tax atleast the tax amount is reduced. But you are right any form of saving is not bad
@smartbrain69 (2790)
• Canada
8 Dec 06
It is truly a good business and necessity for all. just browse insurance business and see
@hazeter (670)
• Philippines
8 Dec 06
I think for some reason we really need it. Here in the philippines it not necessary to get insurance. But ofcourse if u have kids and they are still small u must think of their future first if u feel that u are a sick person. Atleast it is nice to get sure of everything.
