We all have to pay for certain expenses in life. We all require transportation to and from work and around town, housing, food, and medication. Additionally, we require heat, electricity, water, and a means of communication (the cellphone).
The majority of people would categorize each of these costs as “essential.” However, what is life insurance? It might be considered a waste of money by some, especially if you don’t use it at all. However, it is actually a very good thing to pay for life insurance and never receive any payouts.
Something you pay for but hope you’ll never use There are certain kinds of insurance
that you can plan for and hope you’ll use, and there are others that you hope you’ll never need. The first category is insurance for health care. If you show your health insurance card at the doctor’s office, you might get free preventive care or cheaper treatment for an illness or injury than if you didn’t have insurance.
In the meantime, car insurance is a type of protection that you probably won’t use. If you are required to submit a claim to your auto insurance company, this indicates that you have been in an accident or that your vehicle has been damaged, which is clearly not what you want. Instead, you probably would prefer to have car insurance but never actually need to use it.
Life insurance works in the same way. Let’s say you are 35 years old and decide to purchase 30-year term life insurance, which typically offers coverage at a price that is significantly lower than that of a whole life policy. You can argue that you just “threw away” money on 30 years’ worth of premiums if you live to 65. But you know what? Additionally, you must remain a living human on this planet. So there’s not much reason to be upset about that.
In point of fact,
you should buy life insurance with the sole intention of wishing that it will never be used. However, just as you never know when you might get into a collision on the road, you never know when you might pass away without warning. And just as you wouldn’t want to have to pay thousands of dollars for car repairs after an accident, you wouldn’t want to leave your loved ones with financial difficulties if you passed away too soon.
A worthwhile expense, even if it is insignificant When you buy life insurance, you might not get your money back, so to speak. However, what you will obtain is tranquility, both for yourself and the people in your life who are financially dependent on you. In light of that alone, purchasing coverage is worthwhile. If you don’t receive a payout from your life insurance company at the end of your policy’s term, it’s also worth thanking your lucky stars.