Are the Benefits of Life Insurance Worth the High Premiums – No

Other people would say I will just put up my own business to earn money. I respect the idea, but isn’t it that if you will put up a business you will also have to look after it. You cannot let the business run on its own. Insurance is designed to put in our financial resources at a minimal amount to come up with bigger amount of money then the insurance company will use the money for your benefit. Like it will lend money to the government (which you cannot do if you only have about 10,000 a month) and earn bigger interest that is used for the members of the insurance. And this is why people who have the capability to purchase life insurance would invest in good and stable insurance company to get their money’s worth.

People would purchase life insurance for many reasons, but one main reasons is our financial needs. As we grow old our financial needs could not be sustained by our work alone especially if you are on the retiring age. There are 2 kinds of money that you will have to consider before you get life insurance or any kind of insurance: MONEY YOU WORK FOR & MONEY THAT WORKS FOR YOU

The fixed income, the money you get when you work is the “money you work for”. This is the amount of money that you expect to get for a period of time to cover your financial needs. Normally we base our spending on the amount of money we get every month. As we grow old our financial needs does not change most of the times it is the same and sometime would increase especially if you are on medication. This is where insurance comes and this is “the money that works for you”. This is the amount of money you expect to get if ever something happens to you like when you get disabled or when you die. If you get disabled or die (just in case) the amount of money your family expects to use for financial needs will be left at zero if you do not have insurance or something to fill in the your monthly salary. Other people would say I will just put up my own business to earn money.

So if you will get life insurance it is not the amount of premium that matters but the amount of benefit you will be able to get if ever you stopped to work due to disability. If you do not want your family to suffer in financial crisis get an insurance that you could afford to pay and will be able to sustain you financial needs.