Like millions of others, Joe work for his earnings week after week, month after month, year after year.
And he worked for two main reasons:
- He wants to acquire WEALTH – not to become the richest man on earth but to become FINANCIALLY INDEPENDENT, to be free of money worries,
- He wants to leave an ESTATE- a fair amount of capital which will provide for his family should he die- FAMILY INCOME.
With patience, perseverance and planning, he can set aside or save a portion of his regular earnings, and then put the money to work through investments.
In time, he’ll acquire some wealth. And w/ proper planning, he can make certain that this wealth will pass on to his family. But, what happens if Joe dies before he has time to achieve his financial goals?
- Will there be an adequate estate for his family to live with?
- Will there be enough to feed and clothe his wife and children?
- Will there be enough to keep a sound roof over their heads?
- Will there be enough to give his children a college education?
- Will there be enough to provide his wife w/ the peace of mind that comes from financial independence?
- What Joe needs is time to carry out his financial plans for building an estate of adequate capital.
If fate should deny him that time, Life Insurance can step in to provide the Resources he had not been able to raise himself.
It is said that Life Insurance buys TIME.
It does so in a sense that it replaces some or all of the fund the breadwinner would have amassed had DEATH not denied him the necessary TIME. Life Insurance bridges the gap between What you have managed to build and what your dependents would need if You suddenly pass away.
This is the basic job of life insurance- to provide protection against death in the interest of surviving loved ones.
In addition to serving this vital function, many companies have added living benefits such as medical, savings and investment features to their life insurance policies that offers cash values, retirement funds, college funds etc., to be available in the event of continued life.
This story tells you three money concept:
- Man at work – working years of the breadwinner
- Money at work – income continuation for the family when the breadwinner dies
- Money working for you – living on interest when the breadwinner no longer works.