6 + 1 Compelling Reasons To Purchase Life Insurance
I know most of us have, at some point of our life, been bugged by an insurance agent, specifically the insurance agent who sells life insurance products. Can I see a raise of hands of those who have been told countless times by these agents that if you don’t get a life insurance package now, you might be left penniless when something bad befalls you. Or that you cannot live the same kind or standard of lifestyle because the accident has robbed you of your capacity to work. Yeah, we all have our “annoying” insurance agent experiences to tell but seeing from their point of view, there are compelling reasons why we should get at least 1 life insurance product.
If you love your family, you will buy one.
When you die, this is one present you can leave with them with. There has been many instances when the proceeds of life insurance has helped to take care of the deceased’s family’s financial well-being. Sometimes these products can even enrich the family but hey, don’t get any wrong ideas!
Guard your wealth
Okay - this is probably the most oft quote selling-phrase. But it does have its practical reasons. What guarantee is there that you will be in constant good health to earn the kind of wealth you have now? Imagine having a substantial portion of your savings wiped out due to a critical illness. And face it, cost of medi-care has increased tremendously in recent years.
Instant cash!
Most life insurance policy proceeds are paid out within a short period of time following the occurence of an insured peril. Let’s say a road accident happened and let’s say it is due to the other driver’s fault. If you were to sue the other driver, you might have to wait for months, if not years, to get your compensation. In the meantime, you need to dig deep into your cash reserves to pay off your medical bills and other outgoings. With life insurance, you or your beneficiaries get paid much faster.
Forced savings can hardly go wrong
Some life insurance policies enable cash withdrawals in times of need. However, most insurers do not recommend withdrawals unless in emergency situations. Meanwhile, the policies (those which participates in selected schemes) generate bonuses and dividends and thus, gives you a chance of increasing your wealth through this insurance tool.
Create a benefit for your employees
Thoughtful employers can invest and motivate their employees by purchasing life insurance for them which would benefit the employees and their beneficiaries. It is no wonder that insurance coverage is usually one of the highlights in any employment contract. The employees can work happily in the safe knowledge that their and their beneficiary’s welfare are being taken cared of.
An alternative form of security
Some people pledge their life insurance proceeds to financial institutions as security for taking up a loan. When the loan is fully paid up or redeemed, the life insurance policy reverts back to the policy holder as if there was no prior pledge. The policy holder is thus able to ensure that the premium for the life insurance policy is maintained at a much lower rate based on the original date the policy was purchased rather than much later.
That’s 6 for you. Did I mention 7? Oh, it is probably one of the more obvious reasons. Buy one to keep your agent’s mouth shut and stay away from you. That’s in jest, of course. But truly, there are actually more than 7 reasons and you just need to place a phone call to your insurance agent. I am sure he will come running to you with the other reasons. And seriously, most of them are good compelling reasons.
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