life insurance awareness month
The effect of life insurance after the death of a breadwinner can be interesting to observe. I think it would better to look first at the situation without insurance of life. A hypothetical example may help.
Jim is 42 years old, married with 2 children under 14 and 16. Jim started a little late as I wanted prepare for his immediate family. His wife Alicia is 38 years. Jim developed terminal cancer and was very aware that he had more time to live. Alice never worked because he felt he wanted to concentrate on raising children.
Jim and Alice were doing quite well. He had talked about buying life insurance, savings with about $ 40,000. They were thinking in university education for the children when he started saving.
Jim's death the money goes to disappear very quickly if you have no life insurance.
Picking Up The Pieces
On the other hand, suppose that Jim and Alicia intelligent people. They did plan ahead. They have a pension plan and, fortunately, have a life insurance. Jim has $ 2,800,000 20 years of his life insurance and $ 500,000 from Alice has the same kind of politics in his life. Policies on the life of Jim first pay the mortgage on his death and also to provide sufficient income for family not only live up to the kids graduating from college, but by the time the life of Alice.
Alice insisted on its policy, because I felt that if it was die prematurely than the funds could go to pay for a qualified nanny to help raise children. That's a good idea.
After all, the death of Jim will be well. Alicia is able to manage everything efficiently. The mortgage is paid off within 6 months. The life insurance companies use an option in life with the income a period of 10 years certain payment, if Alice die before their children from school graduate. Continue to live in the same house. The children will the same school and still have the same friends. Jim will be missed by his family, but always have a special place in the heart of his wife Alicia and their 2 children. They will know that you care.
This is a real, real life case. I just changed the names. Jim is terminal, but clings.
About the Author:
For additional information on term life go to:
http://www.lifeinsurancehub.net/term-life-insurance-3.html
For information on providing income instead of a lump sum go to:
http://www.lifeinsurancehub.net/LifeInsuranceSettlement.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald’s website is: http://www.lifeinsurancehub.net
Article Source: ArticlesBase.com – The Effect of Life Insurance -the Death of a Breadwinner
Kwame Jackson – Life Insurance Awareness Month 2004
