Sometimes I think people forget (or don’t care about) what the main purpose of life insurance is. This post is going to ignore whether you should buy term or whole life, or whether you can create your own pension using whole life insurance, or whether you should buy life insurance on your young child, instead we are going to basics…to square one.
While meeting with a Planner today, he told me of a story that simply amazed me. He was meeting with a prospective couple who was expecting a baby. While both spouses worked the husband was the main breadwinner and there was no indication that fact would ever change. While in this meeting the husband couldn’t understand why he had to obtain life insurance and actually used the words, “what’s in it for me?”
What is the Main Reason to Obtain Life Insurance?
Life insurance is not for the benefit of the insured. It just isn’t. In its most basic form life insurance is for the benefit of the insured’s family. Life Insurance is used to ensure (pun intended lol) that the insured’s family is covered for expenses. The amount and / or kind of expenses are less important only for this conversation.
Agree or Disagree?