This has been a question that has been asked many times over and answered with many type of responses from many people from Lawyers to CPAs and Insurance Agents. I will attempt to answer these questions is a simple and understandable manner. First we have to get to start with the basics and then go from there.
This is also a question that will trigger many different answers depending on who is trying to create a logical answer to this question. If a person is responsible to financially support his dependents, this will activate a need for a Term life insurance policy to insure his income. Remember that life insurance is security for your families future.
Who needs to purchase Term life insurance? This is a great question.
The first and most important area we have to examine is who is the potential insured and what are his or her financial liabilities. Basically if a person has financial obligations to family members who depend on his paycheck the answer is this individual has a need for life insurance. Just about everyone has a need for either Term life insurance or one of the permanent plan designs such as Universal Life or Whole life insurance. A sudden loss of income can be devastating to dependents and change their life forever.
There are many good companies out there like SBLI, Banner, Transamerica and Genworth that have very affordable Term life insurance rates. Most people are very surprised to see how affordable Term life insurance can be. Our quote engine will display Term life insurance quotes from over 40 of the most competitive life insurance companies instantly. Activate our face amount calculator to get a quick idea what your face amount should be.
Purchasing Term Life insurance is sometimes not considered for the stay at home Mom which can end up being a serious financial mistake.
For the main earner of the family which can commonly be the husband, losing his wife due to a sudden accident or medical illness can cause a major catastrophe when there are young children involved. At this point in time who is now going to feed and care for these kids with all of the other chores like taking them to school and shopping for them?
The husband will now learn the hard way when he gets to visualize all the work his wife would perform on any normal day. Dad is going to have to pay to have the services handled while he is at work all day. The stay at home Mom has a huge amount of responsibility and importance to the household.
Businesses also have a great need for life insurance products such as first to die, second to die and key employee life insurance policies.
Businesses also depend on life insurance for their key employees or partners that would represent a financial loss to their company he they suddenly passed on. Also with a business with multiple owners there is a great demand for life insurance such as “First to Die” type policy which can be very important if something was to happens to a partner with no life insurance in the picture.
Term Life insurance is definitely not to be considered a product just for an individual’s family. If you just got married or are celebrating your 30th wedding anniversary there is a demand for life insurance to protect against a drastic change in lifestyle if something happens to a family member.
Life insurance purchased for the purpose of paying offs ones mortgage in case of a death is one of the most important reasons to have life insurance in place.
Life insurance purchased for the purpose of paying off a mortgage is one of the most important reasons to have life insurance.
Term life insurance for mortgage holders that purchased a home or a commercial building have a very big demand for a life insurance product. You definitely do not want your grieving dependents to be forced out of their home at the same time. This actually happens quite often due to the fact many people try to take a chance which many times proves to be a mistake. The penalty for not having Term life insurance in place when purchasing a home is playing with fire no matter how you look at it. Your dependents could easily lose their home due to the fact the mortgage could no longer be paid.
Due to the fact we do not have a crystal ball to see into the future, we have to insurance our assets and of life for that matters to make sure our assets are protected for unforeseen perils. If you have any questions you would like answered or would like to receive a free life insurance quote simply run our Term and Universal life quote engine and you can also contact us by telephone or email 7 days a week.
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