I have investments. They're better than any life insurance, disability insurance, or whatever, right?
Life insurance, Disability insurance and others should not be compared to Investments. With investment, one utilizes one's hard earned money as capital with the intent to generate more money in order to gain income or increase capital or both. The accumulated assets in your investments are there to be redeemed towards the realization of what you want to acquire and enjoy now. Investments may be directly affected by the economy, wherein a sudden drop in the market will result to losses in one's investment earnings or capital if not properly managed
Life insurance is interpreted differently depending on the person. In one's life, three major things may happen, namely: longevity, shorter life span and the possibility of becoming disabled. Life Insurance provides for the living. It creates a capital that protects and satisfies one's dream of purveying loved one's financial security. It is not just for the designated beneficiary or estate after the insured's demise, but the accumulated cash value comes in handy during tough times throughout the insured's lifetime. One may live long or not , but without a doubt, two things are certain: taxes and death. And as we travel through life, with proper planning and guidance, we amass assets along the way. Death results to an early conclusion of one's mission to achieve financial security. Tax obligations need to be settled after one's death in order to transfer these accrued assets to one's designated beneficiary. In this situation, the benefits obtained from Life Insurance will guarantee that present assets are not used to settle taxes, nine months after death.
As with death, loss of income follows when one becomes disabled. Disability Insurance secures a constant income when unable to work, thus enabling one to continue the same lifestyle. People tend to forget that one of the most important financial security goal is to protect one's income. We all aim to have financial stability which can only be attained by guarding the income that supports it.