Insurance | Michael R Lewis, ASJA

August 14, 2013January 3, 2024

6 Reasons to Buy Life Insurance

For many people, their first experience with life insurance is when a friend or acquaintance gets an insurance license. In my case, a college friend, recently hired by a major insurance company, contacted me (along with all of his other friends) to buy a $10,000 policy underwritten by his company.

Unfortunately, however, this is how most people acquire life insurance – they don’t buy it, it is sold to them. But is life insurance something that you truly need, or is it merely an inconvenience shoved under your nose by a salesperson? While it may seem like the latter is true, there are actually many reasons why you should purchase life insurance.

Term vs. Whole Life – Which Should You Choose?

Many young men about to propose marriage struggle to choose the perfect wedding ring – whether to buy an elaborate and expensive diamond, or a simpler, less expensive gold band. Each ring serves the same purpose as a symbol of everlasting commitment, but there is a substantial difference in cost, as well as the possible reaction of friends and family and the expectations of the recipient.

Choosing life insurance can pose a similar conundrum. While all life insurance provides funds in the event of the insured’s death, the same factors – the purpose for which the funds are intended, the cost, and the needs of the beneficiary – have to be considered when selecting the type of life insurance most appropriate to your situation.

Life Insurance – How Much Do You Need?

Many people’s first experience with life insurance is when a friend or acquaintance gets an insurance license. In my case, a college friend, recently hired by a major insurance company, contacted me to buy a $10,000 policy. He reached out to several other friends as well, and many of us signed on the dotted line.

Though this isn’t the ideal way to buy life insurance, it is, nonetheless, the way by which most people acquire it: They don’t buy life insurance – it is sold to them.