Life Insurances – 5 Key Purposes

Key Takeaways

  • Life insurance is often looked at as something of a waste since it is not mandatory, but there are five key purposes to life insurance.
  • Income replacement, debt repayment, liquidity, funding, and the most important, peace of mind, are the five key purposes to life insurance.
  • Term insurance is low cost insurance which covers you in the event of your death for a certain term; cash value insurance, acts as both insurance and as an investment.

Is It Time? The Elder Care Conversation

An 85 year old woman is on the phone with her daughter. She says, “Honey, I left for church service this morning at 8:15. It is now 3:30 and this nice young man here at the 7-11 let me borrow his phone as I seem to have misplaced mine. I’m a little confused. I’m not sure where I am.”

The daughter has suspected there’s been something wrong for a while, but now she’s got the first “I’m lost” call.

On the other side of town, there’s a couple in their early 70s. Retired with a nice income. They’re very involved with their children and grandchildren’s lives. They play golf and bridge and go out to eat with friends. They’re travelling a lot. They read, do crossword puzzles. They’re living a full and active life.