Why people buy life insurance ?

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PostPosted: Wed Aug 06, 2008 11:51 am   Post subject: Why people buy life insurance ?  

Hi folks,



People buy life insurance for a variety of reasons.



For the fun of it, let's compile 100 reasons why people buy life insurance.



To start with, the first reason is to provide an income replacement fund for the loved ones.



Anyone else like to try?

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PostPosted: Wed Aug 06, 2008 3:50 pm   Post subject:   

why people buy life insurance has to be measured in terms of the peace of mind in knowing that if something ever happens to the breadwinner of the family, everyone else will be ok.



*system edited-link removed



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PostPosted: Thu Aug 07, 2008 6:07 am   Post subject:   

What insurancefiles has mentioned is the most prominent reason for buying life insurance policy, protecting the interests of the loved ones.



Second, some life insurance plans can give you the opportunity to earn investment return in addition to the coverage you enjoy. This form of life plan is gaining popularity with days.



Well, this is an interesting tread to start....awaiting to see more interesting reasons Smile

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PostPosted: Thu Aug 07, 2008 6:14 am   Post subject:   

the benefits paid under a life plan are tax free, hence you're actually building an asset for the heirs to inherit in the future. After you prematured death this asset will pass on to you spouse or lawful heir without incurring tax on it.

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PostPosted: Thu Aug 07, 2008 6:28 am   Post subject:   

Life insurance plans can be purchased to form an income for the insured after retirement. Some plans have the annuity feature incorporated within, which ensures annuity payment to the policy holder once he reaches the retirement age.



This can be a very good reason to buy a life plan since it'll help you to maintain the lifestyle even when you can't earn wages anymore.

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PostPosted: Thu Aug 07, 2008 6:35 am   Post subject:   

The best way to be remembered after life 'give away a generous amount to a charitable trust'. The fund created by investing in a life plan can help you with this idea. If no-other reason to buy a life insurance plan qualifies for you, buy it to donate the benefits Wink



Regards,

Juanita

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PostPosted: Mon Aug 11, 2008 4:11 pm   Post subject:   

Some more reasons to buy life insurance include:



To pay off your existing mortgage loan, provide funds to put your kids through college, or to provide money to pay for living expenses for your family.



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PostPosted: Tue Aug 12, 2008 7:39 am   Post subject:   

Hi..



The primary needs for life insurance would be to make sure that the lives of policy-beneficiaries are safe even after the policyholder passes away!

Yes, one good reason for buying life insurance could be looked upon as an investment or post-retirement income. I'm sure you guys would come across a good number of senior life policies that are being offered now-a-days. Also, I would never forget the eiul option for you!

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PostPosted: Tue Aug 12, 2008 4:54 pm   Post subject:   

There are many reasons why people buy life insurance. The very main reason is to provide financial security for the beneficiaries (mostly children) when the insured dies. Another good reason in buying an insurance is to secure a certain sum of money for their child's education.



For some other people, they buy insurance because their relative is an insurance agent. Or they are advised by the bank to buy an insurance for financial protection on their loan. Some people buy insurance for their future retirement plan.



Different people have different views about the importance of insurance. But for me, the very reason why I have insurance is for it to cover my life risk. For me this is the main reason why life insurance was created.

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PostPosted: Mon Aug 25, 2008 8:56 am   Post subject:   

There are insurance plans designed in such a manner that a specific sum is paid out every year after retirement.



The annual payment can be utilized to supplement pension or retirement income or help the policyholder lead a more exciting retirement life.



The pension is to take care of basic household bills after retirement. The annual cash payment from insurance, depending on the amount purchased, may allow the policyholder go for vocation.



To many, retirement is perceived as the end of life journey; to those with such special retirement plans, retirement is only the beginning of an exciting life.



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PostPosted: Fri Sep 05, 2008 9:11 am   Post subject:   

While looking for good sound reasons or reasons that sound good in buying insurance, I also come across some interesting but valid reason of why people buy life insurance.



A lady has 4 insurance policies, when asked what she intends to do with the 4 policies, she said, "I will surrender the first policy when I am 50 years old for vacation, then 2nd policy when I am 55 years old to host a party to celebrate my retirement, then the 3rd policy when I am age 60 to supplement my retirement income."



"What happens to the last policy?" Her friends asked her.



"For the 4th policy, I will name the person who takes care of me as the beneficiary."



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PostPosted: Sun Apr 12, 2009 11:37 am   Post subject: hi  

Know why people buy life insurance -

1. income replacement

2. saving

3.to insure their life

4.to help their family to maintain financial losses if he is no more

5. tax saving

6.for medical benefits

7. for childs future

8 for child education

9. for girls marriage

10. to secure their lifes

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PostPosted: Mon Apr 13, 2009 12:52 pm   Post subject:   

Hi akhi0001,



Quote:
1. income replacement


Are you pointing at the pension plans?

Quote:
5. tax saving


Yeah, this one has really come up well as a good reason to invest in life insurance.



Steven
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PostPosted: Tue Apr 14, 2009 6:38 am   Post subject:   

Hi,

I think people buy life insurance depends on individual considerations and necessities. Life is very uncertain,unpredictable and know one knows what will happen in future.So the prime reason is to protect the policy holder and his family even after the person is no more.

I have heard about the insurance product for mentally disabled persons.It is specially design for autism,mental retardation and multiple disability.I think its a great step and family members of mentally challenged person reduce financial burden to some extent.

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PostPosted: Tue Apr 14, 2009 6:57 am   Post subject:   

It may sound funny but some people buys insurance to know how much worth they are..

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