Most people wonder why do I need Life Insurance?  Life insurance is protection against financial loss resulting from death.  It is a promise by the insurance company to pay a specific amount of money to people you designate at the time of your death (beneficiaries) in exchange for timely payment of premiums.   Here are some reasons why people buy life insurance:

1. To replace income the family would need to maintain their standard of living after the death of the wage earner in the family
2. To pay off a mortgage, loan, credit cards or other debts.
3. To create a rent fund so their spouse or family could afford rent after their demise.
4. To create a fund for a child's education.
5. To pay funeral costs, taxes, and other final expenses.
6. To create an emergency fund for a family member with special needs.

Americans are underinsured.  Only 47% of U.S. households own any individual life insurance.  In addition, Most families spend 90% or more of their take home pay!

 The death of a family member brings on new costs and loss of income. Life insurance can help loved ones go on. Many advisors suggest that one have enough life insurance to replace 70% of their income.  Do YOU have enough insurance?  If you are not sure, Click here to get a free life insurance quote.

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Last modified: 05/23/03

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