When you hear the word life insurance, if you're like most people out there odds are that the first thing you think of is a policy that a person buys to provide financial security for their family. A breadwinner who wants to make sure that his spouse and children's standard of living will go on uninterrupted, even in the event of their untimely death. It's a great way to make sure your loved ones will be okay and the kids still go on to college, etc.
Now this all makes perfect sense and in fact it's the very reason why most people do buy life insurance. After all maintaining a home is costly; particularly if you have someone has children to raise. There are the expenses that revolve around a person dying that have to be covered. The funeral, burial, etc. These things are costly for sure, and aren't getting any cheaper as time moves on. But even so, there are a lot of other lesser known reasons why someone might buy life insurance.
Partners entering into a business venture together, for instance, will commonly take out life insurance policies on one another to protect their interests. Consider this scenario. What if you were to invest a large sum of money in a startup company with a partner who didn't invest any money but instead contributed the knowledge and expertise required for the business to be a success. Wouldn't you want to protect yourself and your investment in the event that your partner should die unexpectedly? Of course you would.
Then what about someone who has the job that carries with it is certain level of danger. Danger that can increase or decrease depending on certain situations and job assignments. For instance if you were employed by a private security firm and were assigned to work in a relatively safe and stable country you might not want a whole lot of life insurance. However, if you took on a new job with another security firm that had you working in countries like Iraq, Afghanistan, or Libya, you might want to increase your coverage.
Then if you happen to have a relative or friend who's a thrill seeker and engages in risky behavior like base jumping off of buildings and walking on the wings of airplanes at air shows. It would be safe to assume that they had a high chance of dying from an accident. In cases like this it's not uncommon for a friend or relative's to come to some agreement where they can take out a life insurance policy on that person and make themselves the beneficiary.
Then people get life insurance policies for investment reasons and it does have its positive points. For one thing it's an investment that has a huge pay out clause even if you won't be around spend the money. Even so, a life insurance policy does accumulate value and can be used for things like collateral and even to borrow money out of. Also it's a little-known fact you don't have to be dead to sell your life insurance policy. People sell them all the time, even while they're alive and walking around.
Now this all makes perfect sense and in fact it's the very reason why most people do buy life insurance. After all maintaining a home is costly; particularly if you have someone has children to raise. There are the expenses that revolve around a person dying that have to be covered. The funeral, burial, etc. These things are costly for sure, and aren't getting any cheaper as time moves on. But even so, there are a lot of other lesser known reasons why someone might buy life insurance.
Partners entering into a business venture together, for instance, will commonly take out life insurance policies on one another to protect their interests. Consider this scenario. What if you were to invest a large sum of money in a startup company with a partner who didn't invest any money but instead contributed the knowledge and expertise required for the business to be a success. Wouldn't you want to protect yourself and your investment in the event that your partner should die unexpectedly? Of course you would.
Then what about someone who has the job that carries with it is certain level of danger. Danger that can increase or decrease depending on certain situations and job assignments. For instance if you were employed by a private security firm and were assigned to work in a relatively safe and stable country you might not want a whole lot of life insurance. However, if you took on a new job with another security firm that had you working in countries like Iraq, Afghanistan, or Libya, you might want to increase your coverage.
Then if you happen to have a relative or friend who's a thrill seeker and engages in risky behavior like base jumping off of buildings and walking on the wings of airplanes at air shows. It would be safe to assume that they had a high chance of dying from an accident. In cases like this it's not uncommon for a friend or relative's to come to some agreement where they can take out a life insurance policy on that person and make themselves the beneficiary.
Then people get life insurance policies for investment reasons and it does have its positive points. For one thing it's an investment that has a huge pay out clause even if you won't be around spend the money. Even so, a life insurance policy does accumulate value and can be used for things like collateral and even to borrow money out of. Also it's a little-known fact you don't have to be dead to sell your life insurance policy. People sell them all the time, even while they're alive and walking around.
About the Author:
Looking to find the best deal on life insurance rates, then visit Steven Clark's site to find the best advice on term life insurance.
1 komentar:
Buying life insurance is regarded as essential by a lot of people. In many cases, insurance is meant to provide for families when the insured has passed away.
Post a Comment