Either expensive or cheapest life insurance helps people set money aside regularly and persistently year after year. Life insurance guarantees safe and successful accumulation of funds for the future. Life insurance and health insurance capitalize a person’s life value by:
1. Protecting a family against loss of income at the income producer’s death;
2. Creating an estate, eliminating worry, safeguarding an estate against shrinkage by taxes and settlement costs and transmitting and liquidating an estate with minimum delay and cost;
3. Providing future security through a guaranteed cash estate or life income, as life insurance money can be distributed in exact accordance with family needs;
4. Replacing lost earning power at retirement.
5. Providing people with adequate financial protection against heavy medical expenses and lost income due to disability; helping people avoid eating up their limited savings, or going into debt or bankruptcy if they are disabled and unable to work.
Continued financial wellbeing of families depends not only upon Life Insurance and Health Insurance flow of income from wage earners, but also upon the continued good health of the businesses in which they are engaged. So life and health insurance also plays an important role in the business world. The reasons for buying life and health insurance for business uses are the same as those for buying personal insurance in one word, protection. Business owners wish to protect the condition of their businesses in order to provide security for their families. When people buy insurance for personal reasons, their families are concerned; when they buy it for business reasons, their employees, their associates and their families are involved.
Cheapest life insurance and health insurance are used in business in a variety of ways:
1. As a funding medium; for example, life insurance is used to fund a buysell agreement to transfer ownership between partners or stockholders, or to fund a deferred compensation plan;
2. As a form of business interruption insurance; life insurance cannot prevent the interruption of business activity caused by death or disability; however, it can indemnify the business for losses created by interruptions; and
3. As protection for employees and their families from the financial problems of death, disability, illness and retirement.
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