Why People Buy Life Insurance

Have you ever considered why people buy life insurance? I know the salesmen and the creators of the policies themselves have thought about it because if they didn't these policies simply wouldn't sell. Probably the greatest life insurance salesman ever once said that "selling is 98% understanding human beings and 2% product knowledge". Another question that is worth exploring is why do some people not own any life insurance at all. Why would you buy life insurance?
Love of Family
More often than not the reason people buy life insurance is because they care about what their loved ones will experience if they should die suddenly. This caring can be expressed in different ways. The Hawaiian people, I am told, have such a deep passion for the well being of their families that they will go to extreme limits to protect them. They tend to buy lots of life insurance as a result.
There are others who buy life insurance through a deep sense of responsibility. They love their families but they are driven more by the fact that the family relies on them so they have to live up to what is expected of them.
Tax Advantages
Some people, especially the business minded, buy life insurance for the tax advantages the purchase provides. The death benefit of the policy is paid free of Federal Income Taxes more often than not. If the policy is part of your estate the proceeds are taxable.
If you own cash value life insurance the cash value and dividends accumulate tax free. When you cash in the policy you will need to pay the taxes on the interest earned. The reason this is advantage is that these policies are usually cashed in round and about retirement time. Your income is likely to be less than when you were working so you would be in a lower tax bracket.
Tax Shelters
The most highly paid life insurance salesmen are the ones who know the tax laws inside out. Here is how they do it. They are usually qualified Financial Planners. Some are Attorneys or Accountants. What they do is to show well off people legal ways of sheltering their income from Income Taxes. They save them a lot of money. As a result these clients think nothing of putting some of the money in a life insurance policy that they need anyway. They need to buy life insurance to protect their families. A large portion of an estate can easily go to pay estate taxes. These people buy life insurance policies sufficient to pay the taxes upon death.
The reasons we buy life insurance may vastly differ but everyone needs to buy some sort of a policy...if it is even just to take care of final expenses.
Here are some things that everyone should consider:
http://www.lifeinsurancehub.net/estateplanning.html
And for the person who owns a business:
http://www.lifeinsurancehub.net/businesslifeinsurance.html

life insurance - solution for future

The people who most sincerely pray about our well being are our life insurance agents. As they don't want you to depart before your full term on the earth. It feels really nice to know in the modern insensitive world, there is someone who is so much concerned about our well being. In a more serious vein, let us discuss the need and the consideration that we must look into while we go for an insurance cover.
To harp about the benefits of life insurance all over again wouldn't serve any purpose because everyone reading this article must be serious about getting his life insured. However, we must understand that there are certain points that you must keep in view before taking any life insurance policy. First, you must not get swayed by the fascinating life insurance schemes that promise to take care of your future and secure the future of your family by offering you these schemes in a very alluring manner. Remember, you should take these insurances only when you have gone through each and every detail about the policy, else it wouldn't helpful in a great manner.
Then you must get your insurance done through a credible source that should be trustworthy and reliable. So, you must make sure of the outlet that will give you the required benefit in a better way. Regardless of how much cash you have and how much savings have you done, if you think that you have dependents in your family who are your responsibility, then you must get your life insurance done as that wouldn't be a temptation to you , as the amount is being safely guarded by agents.
It is also recommended that if you want to get a cover for your life, then there is no need to wait and brood over the matter as your age and your health act as a major factor in determining your premium and the value of your policy. Remember, your health level is directly proportional to the figure of your premium. Also, you must decide clearly as to who should inherit your insurance amount as well.
Therefore, life insurance schemes are helpful for us and they guide us in planning about our future.