Why Get Life Insurance?

Why Get Life Insurance?
Who Cares About Life Insurance?

 
If you don't pay for life insurance now, your family or business will pay a lot more for it later!
Items on this page:
Reasons why you need life insurance.
Specific uses for life insurance

Reasons Why You Need Life Insurance

There are many creative uses for life insurance, but the first and foremost reason to get life insurance is to replace a financial loss or liability that occurs when a family member, or a business partner dies.

Not too many people care about life insurance itself, because it is a boring piece of paper, and you can't immediately have a bunch of fun with it -- to be sure, in most circles, you won't be the life of the party by taking your life insurance policy along and showing it off to all your friends. (We would love to be proven wrong in this, please let us know if you have any success stories!)

However, people really do care about what life insurance will do for them. The right life insurance, set up the right way, can do amazing things and perform financial miracles on a tax-free basis!

Some people don't like life insurance because they feel like it is gambling and that they are betting against themselves, because they can't win unless they "lose" (die). But there is a big difference between the two, and gambling is a shrewd opposite.

Gambling is a game; in fact, it is called gaming. By choosing to participate in gambling, you create a risk where none existed!

On the other hand, because you are mortal, the risk (or certainty) of dying already exists, you can't eliminate it! Therefore, there is no choice. The risk of financial loss due to death and dying already exists!

Whether you get life insurance or not, you will die. The people who may lose are those that depend on you, and are left with a burden when you die. What you can choose to do is lessen the risk. Obtaining a life insurance policy allows you to pool your money along with other people who also buy a policy; and by so doing, you greatly reduce the risk by transferring a lot of it to the life insurance company.

So for the sake of those who depend on you, please do get life insurance. If you have decided to get life insurance, you may find that your brother-in-law just got into the insurance business. If you really must get your life insurance from your brother-in-law, at least research the rest of this life insurance web site first, so that you will be prepared because many agents have not actually been trained to be an agent, they have only been trained to sell.

Otherwise, if you don't have to get life insurance from your brother-in-law, we would be glad to be of service. We have the ability to look at many different life insurance companies and many different life insurance policies to find a solution with the right options to solve your need! You will get a competitive quote. As well, you are still welcome to research the rest of this web site!

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A liability should not outlive the person who created it!

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What are some of the specific uses for life insurance?

Some of the uses of life insurance are:

  • To buy time -- time for the family to go through the grieving process.
  • To save a home by leaving a roof over the family's head, instead of a debt.
  • To replace lost income.
  • To provide a retirement.
  • To preserve the family's lifestyle (but maybe lower your coverage just a little so there won't be enough money for the male child's violent video games).
  • To pay taxes, especially estate taxes so that family property or the business doesn't have to be liquidated (this must be set up correctly or it too will be subject to estate taxes).
  • To provide the funds to buy out a deceased business partner's interest in the business (this also requires special handling).
  • To pay for college.
  • To be a starter plan that at least pays for two years worth of lost income.
  • To pay off medical bills due from co-payments owed and expenses that weren't covered by the health plan (it happens).
  • To pay for funeral and burial costs, etc.
  • To maximize retirement income by eliminating the need for a married couple to choose a joint and survivor option.

The life insurance proceeds don't even have to be paid out in a lump sum. A financially savvy person would take it in a lump sum and invest wisely any portions not immediately needed and would probably do better. But not everyone is financially savvy, nor is everyone capable or willing to become so, even though maybe they should. The real determining factor is not what they need to do or should do, but what they are most likely to do once the money is actually in their hands. So another life insurance pay-out option is to provide a monthly income instead of a lump sum. This can be especially attractive when there is fear that the intended beneficiary might not manage a whole lump sum very well (how fast can an eighteen-year-old blow $200,000? Pretty fast!).It doesn't all need to be income, part of it could be a lump sum. This would be desirable since there can be emergencies that arise that would necessitate having some accessible cash available; and of course there could be some immediate costs that would call for having at least a partial lump sum.

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Life insurance is liquid cash -- right when it is needed most!


The PGA Financial Co.
PGAFinancial.com
Call: (714) 897-0955
Toll-free: (877)336-5490
E-mail: Service@PGAFinancial.com
13736 Goldenwest Street,
Suite H
Westminster, CA 92683
Lee Martinson

Licensed in:
Arizona, California (license #0629626), Oregon, Texas, and Virginia. For other states, inquiries are referred to agents licensed to handle insurance in that particular state.

PGA Financial has no intent to generate interest in any particular life insurance company or specific policy, but rather to inform and educate you on the general concept -- after which, if you are interested, a broker at PGA Financial will be glad to research companies that offer such plans, get you a quote and assist you in making a choice. If you do become interested and obtain a policy, the broker would be compensated by the insurance company.

© 1998 The PGA Financial Co. All rights reserved.