What’s the purpose of Life Insurance?

Earlier this week, I meant to call a colleague, but I didn’t get around to it. Then, just yesterday, I received a text informing me that her father had passed away. Knowing she was his caregiver, I can only imagine how devastated she must be. I’m not sure if he had life insurance. If he did, it could provide her with some financial relief, allowing her to take the time she needs to destress and recover from her loss.

Just last week, I heard that an old classmate passed from a heart attack! She was my age! And a professor I knew died some time last year. He was in his eighties. His wife, also a retired professor, faced dire financial struggles after his passing.

It’s all too common to hear stories of persons passing away without having made arrangements for their loved ones. It makes me wonder: Do we really care about our loved ones?

Life insurance should really be called “income protection” because its purpose is to protect the family against the premature death of a breadwinner or a caregiver. It acts as a substitute for income. Remember when you calculated how much you’ll earn in your lifetime? It was a fortune, wasn’t it? The potential risk of losing that earning power is what makes life insurance a necessity.

Love,

Sanch