Tuesday, October 5, 2010

1. A Protection Against Premature Loss Of Income.



An acorn is a seed, a promise of shade and
shelter. Insurance, like an oak, is oftentimes
larger than the man who planted it. - Benjamin David King


''The greater your income, the more you stand to lose. The lesser your income, the less your family can afford to lose.''

In simple, colloquial language, people buy because they may ''Die Too Soon''. Nobody knows how long one's lease on life will run before it expires. Life insurance provides the means to ensure that an early, untimely death will not at the same time wipe out the potential income that can accrue to the family.

There's really no protection against loss of income, just the premature loss that is, losing the income too soon, too early.

Insurance is particularly useful for a married man with a wife and small children. All his hopes and dreams of making a decent provision for his family would be dashed by one unfortunate event - death.

A young graduate is especially vulnerable to this. He has great possibilities of income, provided he lives long enough. Life insurance allows the parents to take one further step by insuring against his future income.. just in case.. something untoward occurs. The projected stream of income does not dry up too soon.

For just three cents, the dollar can be protected. No other financial instrument can do this so well.

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