What Is Life Insurance And How Does It Work?

When I go around town everyday while going to work, I kept seeing these billboards all over the place that says “I love my life! That’s why, I have life insurance! How about you?” or something like “Always think ahead. Come to us. We will help you think about your future”, another billboard says.

It seems that there is a huge interest for life insurance these days and you just can see from these outdoor advertisement signs that people are now become very much aware of life insurance and how life insurance works for everyone.

Ever since I got hired from this job of mine eight months ago and my wife is pregnant with our first child, I was also thinking about getting a life insurance.

But, what really is life insurance, I asked myself?  Just last week, I met an old friend of mine who is now working as a financial analyst which, by the way, in simpler terms, a life insurance agent and we had a long talk over a cup of coffee.  We haven’t seen each other for almost a decade. So, we had a lot of things to talk about including life insurance protection plans.

He told me that since I am still sort of starting out my life, having a new job and about to start my family and all, he strongly advised me that I should buy a life insurance policy.  With a life insurance, as he explained to me slowly, is a way of providing financial security to my loved ones in case something happens to me.

He added that since we are still at a younger age, buying life insurance at twenty seven years old means that the premium payments that I will pay every month will be cheaper compared to the time when I am already forty years old.  The fact of the matter is, he even told me that he himself had bought two life insurance policies from the company that he is working and never had any regrets in doing so.

So, I said to myself that if I buy life insurance now, I can get one with a very low reasonable price.  What really strikes me most is that if I buy life insurance right now and something happens to me the following day, all of those unpaid premiums will be waived and my life insurance policy is considered as “fully paid”.  That’s pretty amazing, right?  That means to say, if I buy life insurance with an insured amount of a million dollars, my family will get that million dollars and they can continue living a life without my presence.  So, that’s how life insurance really works.

That’s not bad and since I am a family-oriented guy, an attitude that I have developed even when I was still living with my parents because my Dad was also one, I’m actually planning to buy one within this week and I’m glad that I crossed paths with my old friend.  I was just wondering why there are some people who would try to avoid a life insurance agent not knowing that the investment they will get from buying life insurance all comes back to them in due time.

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