TI - Why Do I Need Life Insurance? Lesson
Why Do I Need Life Insurance?
Nearly everyone needs life insurance, and people buy this type of insurance for a variety of reasons. Some choose life insurance as a means of replacing lost income to support their families in the event of their death. This way, if a parent dies, there is money available to pay expenses and support the family. Others purchase life insurance to pay the cost of their final expenses such as funeral and burial costs, debts, medical bills, taxes and so on. Still others purchase life insurance as a way to provide heirs with an inheritance. The reasons for purchasing life insurance are as varied as the people who buy it. In order to decide if you need life insurance, you should ask yourself, "If I died tomorrow, would it be a financial hardship on the people I care about?" If the answer is yes, then you probably need life insurance.
Many employers offer life insurance as one of the benefits of working for the company. Amounts differ from employer to employer, and sometimes these amounts can be selected by the person being insured. Many employers offer life insurance benefits at no expense. Others offer employees the opportunity to purchase life insurance for themselves and their family members through the company at a reduced rate.
When you purchase life insurance, a medical exam is typically required by the insurance company. This exam helps the company determine the risk associated with issuing a policy to you. Risk can vary due to
- family characteristics (such as a history of illness),
- your personal characteristics (age),
- or your lifestyle choices (smoking).
Actuaries use sophisticated techniques to measure risk. Review the presentation below to learn more information about choosing the right life insurance.
Choosing the Right Life Insurance Presentation
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