The role of life insurance is that if the bearer of the family responsibility leaves the world unfortunately, this part of compensation can be used to offset the future fund gap of the family. Compensation is one way to prepare the family responsibility fund (this gap can also be replaced by huge deposits, but generally, life insurance is purchased because of lack of household deposits or budgets).
Family liability refers to children's support and education funds, parents' support, family living needs, and other expenses such as housing loans, car loans. The bearer of the family responsibility should usually prepare in advance.
In this way, in case of unfortunate departure will not put the entire family in pain and despair. At least, it will leave or indicate another promising path for the family. It may lead the family from the edge of poverty because of the death of a beloved family member. This is what we, as responsible people, work hard every day for.
If you are still hesitant whether life insurance should be purchased or not, try putting aside the personal insurance you already have purchased for the time being. After all, the compensation will be immediately spent in large amount due to the occurrence of the insurance accident itself, and there is little left, and that may be far from enough. Then try and answer a few simple questions. These may help you decide.
1. Who will support your adolescent children and prepare for their education expenses?
2. Who will support your parents and take care of your family?
3. Who will repay your mortgage, car loan and other debts?
The answers to the above questions are the unique insurance rights and interests of life insurance. Even if the insured left the world, the family can be left large amount money to take care of family responsibilities. Leave love but not debt.
Life insurance can prepare families with enough compensation to carry on once they lose a major source of income. Of course, life insurance appears to be of less importance for those who do not take on much responsibility for the family.
Life insurance intended for:
1. Younger insured: young people who are pursuing a career, or just starting a marriage, usually bearing burden for supporting parents and housing loans.
2. The insured with limited income but heavy livelihood responsibility: the insured with less income in the career construction period or in a more mature period but with heavy responsibility for taking care of family and children.
3. The insured that need death protection temporarily: the insured who are repaying loans or debts; or those who have temporary difficulties in paying premiums due to unemployment or other reasons.
4. High net worth people, since life insurance has one more important function, i.e. asset inheritance. Avoiding wills, life insurance allows the insured to give their asset to whomever they would like to inherit. It is completely according to their own intentions, avoiding family disputes.
To sum up:
Life insurance is an essential insurance for those who function as the family pillars with liabilities and in the period of responsibility.