The Purpose of Life Insurance
Now I want to deal with another theory right now and it’s in the subject of life insurance. Now y’all had mentioned that you own some life insurance through work right. Have you ever bought life insurance on your own…outside of work? Okay, that's pretty typical. Okay lets talk first about the purpose life insurance. Okay, so what do you think the purpose of life insurance is? What would you guess? Lets just look an example. Let's say the two of you are making roughly $40,000 a year. So you each have $40,000 a year in earnings so that’s about $80,000 combined. Now that eighty thousand dollars is paying for food, shelter, clothing, lifestyle, kids…right? So if one of you were to die prematurely… that’s $40,000 that is no longer here.
So if you have $40,000 of income, but an $80,000 of lifestyle, what’s going to happen?
What would the family lose if that happened? Yes just about everything. So we believe that life insurance should replace the income, or that $40,000… that you buy enough life insurance to replace that possible loss of income. Does that make sense?
At least until the children are grown and out on their own maybe age twenty two twenty three, something like that. Hopefully they would be out on their own by then right?
So if you have $40,000 of income, but an $80,000 of lifestyle, what’s going to happen?
What would the family lose if that happened? Yes just about everything. So we believe that life insurance should replace the income, or that $40,000… that you buy enough life insurance to replace that possible loss of income. Does that make sense?
At least until the children are grown and out on their own maybe age twenty two twenty three, something like that. Hopefully they would be out on their own by then right?