Do i really need life insurance for me and my family or is it a scam?

I'm a married thirty something with a 6 year old son and we're expecting a baby girl in a months time! Things are hectic to say the least! A close friend of mine asked if I had life insurance and I have been thinking about it because I don't have any cover in place. I always thought life insurance was a waste of money because you only get a payout on death which means if you don't die in a specific time frame you lose all your premiums. Can anyone give me some direction?

I think you need Life Insurance. You might be asking why is life insurance necessary? well life is full of uncertainty and with uncertainty comes risk. However well prepared we are we do not know what is around the corner and what kind of fate awaits us and that is the reason why life insurance is so critical.

If you don’t have life insurance already it may be worth considering, now I am not a salesman anymore and there may be some thinking that I am in it to further to recommend products however I assure you this is not the case and I am only writing about what I have learnt. So here goes insurance 101 and why you should consider protection.

A life policy guarantees you a sum of money during the term of the policy should you be unfortunate enough to pass away. This policy is guaranteed as long as you make the monthly premiums on the policy. Now the premium is determined by actuaries who work out how long you are likely to live given your lifestyle. This sort of policy is essential if you have dependents that you want to protect financially in the event of death.

The best way in my professional opinion is to create a life policy which has critical illness attached to it, this sort of policy is a bit more expensive but in the long run it is worth it. By adding a critical illness cover you can receive a lump sum payment upon being diagnosed with one of the critical illness that is stated on the policy. Such a policy will help with hospital bills and treatment if you were to be diagnosed with one of the illness.

During my professional career a saw many clients and some of them refused my advice, I once asked a client why he would not take out the policy and his response was that he was fit as a fiddle, I followed up with the question that what if you had an accident which he responded "I am always weary". Hopefully that client is fit and healthy nevertheless any sane person can come to the conclusion that they cannot control all the variables and there is a chance however small that something may happen to them. It is a small price to pay to protect your family by taking out life insurance and hopefully I have given you an insight into the importance.