Is life insurance worth it? This will clear your doubts
Still in 2021, some people believe that life insurance is a waste of money. These people will typically cite the number of insurance companies that have gone out of business recently, as well as the amount of times that customers have been denied. They also say that there is no proof that life insurance actually saves lives unlike other insurance policies such as car and home. Also, there are some that believe that life insurance is bad because they think it’s a waste of money.
By the end of Oct 2021, most people have access to insurance through their employer, and this includes a lot of benefits that employees wouldn’t think about. As of 2020, the U.S. insurance industry wrote net premiums totaling $1.28 trillion. Only 51 percent of premiums came from property/casualty (P/C) insurers, while 49 percent came from life/annuity insurers, according to S&P Global Market Intelligence. By the same year, U.S. Department of Labor statistics indicates that 2.9 million Americans were employed by the insurance industry.
As in the US, the scope of insurance has been growing as a part of peoples’ lives worldwide. But, as in any other sector of society, life insurance sector has also its pros and cons.
Why are some people mocking Life Insurance?
Life insurance is very expensive, and many people who have applied for it have been denied. Since there are so many insurance companies that have gone out of business recently, it makes it hard for some people to believe that life insurance is still worth it.
It is not true, though, that life insurance companies have been going out of business. Typically, these companies are just being bought by another company or having trouble with bank loans. If you look closer, these loans usually have minimal problems.
No one can guarantee your safety in the event of an accident in an automobile or in a home. Neither can you guarantee your safety in the event of medical problems in your home or in your car.
This is why life insurance was created. It is a way of giving your family some security should something happen to you while you are alive.
On average, someone dies every 20 seconds. That’s one person every five seconds, or 1.2 million people per year. It’s an alarming number, but it’s also a very real possibility that you or someone you know will be one of them.
Insurance benefits are set out to provide cover for your needs during specific reasons. For example, if you have an accident whilst on holiday, insurance will cover the costs related to your stay in hospital and any physical damages caused by the event itself. Other benefits might address additional issues that may arise (e.g., car accidents, medical bills).
If you lose your car while abroad, your insurance company will cover the cost of your flight home. It’s worth noting that many local laws do not allow same-day travel for flights back to “home”.
Any benefits provided by insurance are fully or partially paid out according to specifically defined rules and regulations. The key to understanding insurance benefits is that they are given at no extra cost, but still require you to meet certain criteria in order to receive them.
For example, if you lose your house while overseas, only the expenses incurred due to the damage caused by the event (e.g., repairs and insurance fees) will be covered by your insurer.
In addition to the above benefits, some insurance policies offer what is known as “concierge services“. This refers to a network of services that you can contact when in need of assistance in a foreign country. These services may include hotel reservations, restaurant recommendations, and guidebook suggestions. This type of service is usually independent from local laws, and might not be available in all nations.
It’s worth noting that these benefits are sometimes only partially paid out due to the nature of the event or incident that occurred. For example, if you break your leg while rock climbing overseas, it’s likely that your travel insurance will only partially cover the cost of your hospital visit.
Circumstances if you are not Insured
So what would happen if the person who died who didn’t have life insurance? If they have dependents who need financial support, the insurance will cover the cost of medical bills that are currently being paid by their income.
Why on the earth do you think that Life insurance is a waste of time? Lets have a look at the following situations:
- Your parents have life insurance and you are a beneficiary. However, they have a lot of debt and you don’t know how you will manage to pay off all that debt from your own pocket.
- You have an unpaid mortgage that is worth $100,000. If you die suddenly, your family will be left with all the debts; and they will lose their house in the process.
- You have a son who has just started his own business and is suffering more losses as time goes on. In order to help him, you have taken some loans from local merchants on the condition that if something happens to you, then your son will have to pay them back. You want your son to live his own life and not have a stressful experience of paying off a debt that is not even his.
When your family doesn’t have life insurance, they will face tremendous stress. It’s because their income will cease suddenly if you die. Families with children will also be burdened with paying off your debt before they can even think about starting over. We recommend you to get insured as soon as possible.
Insurance can help you with all of these situations and more. There is no reason not to get insured. Please note that all of the above are hypothetical situations. This article is intended to simply make you think about the effect of death on your closest ones.
The decision is yours!