Do I really need life insurance? That’s a common question I encounter as an auto and home insurance agent. The short answer is, it depends. People buy life insurance for different reasons. Firstly, you must ask yourself one question: What is the goal of life insurance? For some people it’s about leaving “something” behind for when they pass on. Think of a grandma buying a life insurance policy with the intent of leaving the proceeds to her grandchild. Some people use it with the goal of cash accumulation within a universal life insurance policy. Although, in my opinion, life insurance should not be treated like a savings account, some wealthy individuals choose universal life policies for cash accumulation. The most common, and perhaps the most important reason to buy life insurance is for “income replacement.” Ask yourself this question, if you were to pass away, would your surviving spouse have the money to pay for monthly living expenses, such as mortgage, utilities, food, etc? Income replacement by far is the most common reason to buy life insurance and probably the most common type of life insurance used for income replacement is term insurance. Term insurance covers you for a predetermined period of time for example, 20 years. It is the cheapest form of life insurance. So if you are wealthy enough where there is never a lack of money, then perhaps your better off not buying life insurance.
Fred Gonzalez is the principal agent at AlphaSure Affordable Insurance Services in Laredo, TX. He has been licensed to sell and service insurance in Texas since 2001.
AlphaSure Affordable Insurance Svcs 201 W Del Mar Blvd Suite 20 Laredo, TX 78041
(956) 729-9500 firstname.lastname@example.org