patty
Lv 7
patty asked in Business & FinanceInsurance · 1 month ago

is it common for people to have life insurance,?

6 Answers

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  • Amy
    Lv 7
    1 month ago

    If other people are dependent on your ability to support them - either physically or financially - then you should have life insurance to take care of them in case you die. You should also have disability insurance.

    Most people get life insurance when they start having children.

    It's also common for impoverished older people to have just enough insurance to pay for the funeral, so that their death doesn't become a sudden financial burden on their relatives.

    In fact, it's common for people to keep paying for insurance long after they no longer need it (the kids are grown up and support themselves). Insurance companies try to sell it as an investment product that will gain value (it won't). Or they convince you that continuing to pay the same premium they agreed to 20 years ago is a good deal because insurance would be much more expensive as you age.

    • car253
      Lv 7
      1 month agoReport

      Insurance is  more expensive when your older.   I agree except those old, old, old, policies that people have for many years should not be cashed in because of taxable gains and they are now earning dividends beyond belief.

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  • RICK
    Lv 7
    1 month ago

    Very common.......

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  • fcas80
    Lv 7
    1 month ago

    Yes, although many do not.  Many people get a small amount as an employee benefit at work.  The question is whether someone else depends on your income and would be severely inconvenienced if  you suddenly die.  If you are an 18 year old unmarried person, the answer is probably no.  If you are a married person with kids the answer is probably yes.  If you are a married stay-at-home mom with kids, even with no income, the family would still need to replace your services if you suddenly die, so such a person should also get life insurance.

    When I was married with three kids, I bought three times my annual salary in life insurance.  With the kids grown, there is not that same need.

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  • 1 month ago

    Yes, even if they don't need it.  Some don't need it and don't have it.  Some need it and have it.  But many, many don't need it but have it anyway.

    • Anonymous
      Lv 7
      1 month agoReport

      But...many, many don't have it, but need it.

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  • Don G
    Lv 7
    1 month ago

    If you have a young family that depends on you for support, then term insurance is the way to go. Cancel the policy when your children are grown. You can get considerable coverage when you need it, at low cost.

    • car253
      Lv 7
      1 month agoReport

      You should not cancel if you have grown adult disabled children.

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  • Anonymous
    1 month ago

    Yes, married people with dependents primarily. Im single with no kids. It makes no sense for me. But I do have a small policy my parents bought when I was a kid. I could cash it out but I don't need the money. And it grows a little every year.  I could get $6000 in cash or its worth $9000 or when I die.  They bought it in case I died they could afford to bury me I guess.

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