The Pros and Cons of Buying Life Insurance

It is really nice if a person has his own life insurance policy and I can attest to that with all my heart.  When I bought my first life insurance policy many years ago, it was a time when I recently got married and after a year, we have our first-born, a beautiful daughter. I knew that I needed to have some kind of reassurance that if ever something happens to me, my family will not be left in the dark night living out in the streets and panhandling, so to speak.  Since I’m the head of the family, I have to make sure that this kind of thing will never happen to them.  So, I bought a life insurance policy, my very first one. To date, I have three life insurance policies.

So, what’s with this life insurance policy? If life insurance can help people secure and protect their families’ future, why is it that not everyone in this world has life insurance? If they understand that life insurance policies are supposed to help them secure their financial future, why is it that there are some people who are still hesitant to invest in this kind of thing?

Yes, life insurance can really help anyone. But, just like many other things, life insurance has its own “black and white”, its own gray area, its own advantages and disadvantages and its own pros and cons.  What are the pros and cons of life insurance?

Since I always wanted to hear the good news first if somebody will come up to me and say that he has good news and bad news for me, I want to start with the pros of life insurance.  First of all, since I’m a person who doesn’t want to have a lot of bad things to think and talk about, I bought life insurance because I wanted to have a peace of mind. Yes, that is absolutely right. If you will buy life insurance, you will definitely have a peace of mind know that your bereaved family is still well-provided for in case you are not around anymore.

Life insurance can also be beneficial if a person becomes terminally ill.  For instance, what if you have been working so hard because you have a family to feed and that you sometimes forgot to take care of yourself and you fell ill like you were stricken with pneumonia or anemia?  What if you had a stroke and it’s a pretty bad one. What if you start spending your whole life on a wheelchair and you can’t work anymore?  With a life insurance policy in your hands, you and your family won’t have to worry about anything with regards to your income.

If nothing will happen to you during the paying period, you can get the insured money through lump sum or through staggered payments.  For instance, you bought a life insurance policy worth $50,000 and you have to pay the premium cost for ten years every month. After the last month of the tenth year, you can opt to get the $50,000 and do you know what will happen next? You get to use the money to start a business of your own or you can do some house repairs or buy a car or take your family along with you for a nice week-long vacation in the Bahamas or to the world-famous Boracay Island in the Philippines.

What about the cons in buying life insurance?  For some people, it is not necessary for them to buy life insurance if they don’t have a family of their own and they are well-off.  For me, the only con in life insurance is when you actually start to plan to buy one if you are already older. In life insurance, the older a person is when he buys life insurance, the more expensive are the premium payments. Technically, one disadvantage is you could outlive your insurance term and will not receive any financial benefit based on the premiums that you have paid out. It can also be expensive if you have underlying diseases.

Personally, there are more pros than cons in life insurance policies.  If you don’t have an immediate family, you can still buy life insurance and, perhaps, you can put in the contract a charitable institution as your beneficiary which can be a big help for other people even if you don’t know them at all.

Leave a Reply

Your email address will not be published. Required fields are marked *