The need for life insurance can be found from it's meaning, which is a system designed to protect people against financial hardship in the even of a loss.
Life Insurance is a risk-sharing business. For me, it is a blessing. Not everyone is blessed with Life Insurance especially for those who are old or sickly.
But often, this is being neglected by the young and healthy. They kept on providing excuses for not getting an insurance by telling "I'm still young…I'm still healthy…I don't have any dependencies yet", and when they decided to get one, they are being declined either because they are sick or too old already.
As a breadwinner, Life Insurance is needed to protect your family or dependencies from financial hardship on the event of your loss. These financial hardships includes:
- Funeral Cost
- Expenses to sustain the lifestyle of your dependencies
- Estate Taxes
If you have parents who are still alive and healthy, insure them, because the financial burden will definitely pass to you on the event of their loss.
As a business man or company owner, you may insure key person of your company to ensure company's success on the event of his/her loss.
To summarize in just a few words, the key benefit of Life Insurance is "Peace of Mind".
