Life insurance
Posted on October 19, 2009 - Filed Under Insurance |
Life insurance was never meant to be a permanent need. Its original purpose was to protect people while they were younger, before they had a chance to build up a nest egg, in case the family breadwinner died early and unexpectedly. If the breadwinner lived his or her life according to plan, however, the family would accumulate enough assets to make itself safe and then let the insurance go.
Today, howevei a huge industry exists to sell you as much insurance as it can, whether you really need it or not.
I know how the industry works, because I’m a licensed insurance agent, and even though I don’t like to sell life insurance, I know the workings of most policies inside out. I also know how the commissions work. If you knew how large those commissions really are—often 80 to 90 percent of the first year’s premium—you would know why people say, “Life insurance isn’t something you buy. Life insurance is something that’s sold to you.”
If you’re single and have no dependents whatever, you can skip this section, because there’s no need for you to have life insurance at all. However, if you have people who depend on the money you bring in with every paycheck, there is information here it is essential for you to understand. The four questions to ask yourself about life insurance are these:
Do I need it?
If so, how much do I need?
If so, how long will I need it?
If so, what kind of life insurance policy do I need?
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