Life Insurance Policies Make Sense for Everybody, Anybody

"I'm just a working man with a wife and kids, paying off a mortgage... I don't have any life insurance policies and don't plan on getting one in the future - it's a type of extortion, a way of scaring me into parting with my money...It should be illegal to charge people so that they don't feel so bad about the prospect of dying!"

The man who said this is living in a dream world, fooling himself into believing that should he die prematurely his family will get by just fine without him, financially, that perhaps his savings account and pension fund will suffice. And he's out of line taking issue with people that have his interests at heart... It is precisely the average working person with a family that life insurance policies were designed for - for regular folk who work hard to make ends meet and who don't have significant cash reserves for their dependants to fall back on if needs be.

Should Mr Joe Average die when middle-aged, say, his family will definitely not be financially secure unless he has a safety net in place. That savings account will run dry in no time and his pension fund is only meant to be drawn from after he retires. Obviously, prematurely tapping into money intended to support a couple in their old age will in all likelihood result in there being too little for the surviving spouse to live on when reaching retirement age.

One of the attractions of life insurance policies is that they are structured so as to pay out meaningful sums of money whether you've had them for many years or just a few months. Another is that the younger you are when taking out the cover for the first time, the more the monthly premium is just a small price to pay.

And it's interesting to note how many of the wealthy and wise have life insurance policies.

Presumably they know a good thing when they see it.