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Life Insurance - Essay Example
Author : brionnazieme
Finance & Accounting
Pages 4 (1004 words)
This work is written as a life story and it shows how important the life insurance is, because death is unpredictable, and though we wish it away, people should stay prepared by transferring the associated risk to insurance companies. …
So many ways exist in which to offer good parenting and my parents did not fail in this responsibility. Memories of my childhood are filled with admiration, remembering how my father worked hard to give us a comfortable life.
As a family, we advise every parent to take up life insurance. Insurance companies offer quotations for this insurance cover free of charge, and could be as little as a monthly premium of $50 for a sum assured of up to $1 million (Koller 23). It is a sacrifice worth making in the long run. In making these quotations, health and age determine the premium. With younger people having longer periods to make premium payments according to Kelly (147), it would be advisable to take up the earliest opportunity possible to take up life insurance as the premium payable would be lesser. One could take up term and/or whole life insurance policy. The US Department of Veteran Affairs differentiates between the two with the former taken for given period of time before maturity while the latter matures only on death of the principal insured. Depending on one’s need, it would be advisable to take up both insurance policies. This is a risk avoidance approach where the risk of a suffering family following the parent’s demise is transferred to the insurance company (Stephens 122). This is because death is unpredictable, and though we wish it away, people should stay prepared by transferring the associated risk to insurance companies. Even though life insurance did not get us our father back, it made sure that the family income was not cut thus ensured that our lives continued normally. ...