People get murdered all the time for life insurance money! Why is life insurance necessary??
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You are more likely to SURVIVE being struck by lightning TWICE that you are to be murdered for life insurance.The purpose of life insurance is to provide financially for those that are dependent on your income. If you have no dependents, or have enough assets to replace your income, life insurance isn't actually necessary.
People also die in accidents or die from illness. Life insurance is a gamble. If you die, you win; your beneficiaries get money they can use to replace the loss of your income, and the amount paid will probably be more than what you paid in premiums. If you don't die until you are old, you lose (unless you had a certain type of policy with a cash value that grows, and even then, you still usually lose). The insurance company won. They took your money and never paid out, and if you have the type of policy that insures you no matter how long you live (certain paid-up at a certain age policies), they made enough money from investing the money you gave them to cover it.Insurance companies make money, they don't lose it. Which means that they make more off of those who live long lives than they pay out for those who live short lives.
You need to learn the difference between TV/Movies & real life.
I guess if you mean by "all the time" as "almost never," I guess that'd be correct. Nobody gets murdered for life insurance. Life insurance is necessary so that dependents of the decedent don't need to change their life style to continue living life as planned...eat food...pay rent...pay for college, etc....
It's to replace lost income if someone dies. Simple as that.
Murders for life insurance money almost never happen in real life. They mostly happen in fiction (television, movies, books, etc.).Life insurance is necessary for two reasons:1) To pay for funeral expenses, burial, etc., immediately after death, if the family doesn't have enough savings.2) So that the surviving spouse can pay for regular living expenses, especially if they don't have a job.
Murderers tend to get caught, and no one gets to kill someone, get caught, and keep any money that comes as a result of the victim having been killed.So, your claim that people are killed 'all the time' for the insurance money is factless nonsense.
It is money to help your family's income when you die because of the reduced income and to pay for the funeral costs if you did not take care of that before.
People very very very rarely get murdered for life insurance. Why is it necessary??? So that if I die, my family can continue to live in our home and plan for college without my income.
Life insurance is not for who dies. It is for who is left behind. For example, say there is a family of four and the father is the main income for them. If something were to happen to him and he has no insurance the other family members would quite possibly have to find somewhere else to live. Life insurance prevents this.
Life insurance is not necessary. Term life (policy that lasts 20, 30 15, 10 years or whatever) does not payout 97 % of the policies sold. People do not get murdered all the time for life insurance money.Life insurance may be required when a business has a CEO or other top exec, if they were to die, would significantly hurt the bottom line of the company.An individual may consider life insurance if they have minor child, a non-working spouse, or other person who is financially dependant on them. If this breadwinner were to die they still what this financially dependant person/people to have some money to help them out when they pass away.Life insurance can generally skip probate, so the funds may be accessible quicker then other inheritance funds.It could be for a lot to help pay off the mortgage, or it could be for a little to help cover funeral costs.Insurance companies make money hand over fist on the policies, or else they would not be offered.
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