Many people would benefit from a life insurance policy. James realized that he is not one of those people. Life insurance is simply not worthwhile for a group of people. Who is that group? Stick around till the end of this video to learn more about that group before making up your mind and buying a life insurance policy.

The concept of life insurance is simple. The policyholder pays a specific sum of money in exchange for the beneficiaries receiving a death benefit.
This death benefit would substitute the financial income of the deceased policyholder. It’s a financial guarantee that the policy holder’s family will continue living within their lifestyle without having financial challenges. They won’t have to take on double shifts or lose any of their properties.
It is the ultimate plan B that helps your family avoid catastrophic financial outcomes.

So, it's as simple as that life insurance should be used as an income replacement strategy. People who are not earning money should not be purchasing life insurance. The fact is that there is no income to replace those people so life insurance would be redundant. While I have your attention, please hit that subscribe button and bell button to join our notification squad.

Remember, life insurance is not a guarantee against death. It is not an investment either. The policyholder is paying for some peace of mind.
The peace of mind can have an expiry date or last depending on the life insurance type you purchase. You can check out our other videos on whole life insurance and term life insurance. The kids and older relatives are the prime examples of a group that should not be purchasing life insurance.

Kids do not earn income and therefore paying premiums for them on a monthly basis would not cover anything. Older relatives have a statistically shorter life span which would make the death benefit smaller in size and the premiums higher. Even retirees who have a rather limited income may fall into the group of people who do not need life insurance. Now it's clear that life insurance should not be seen as a means to make money.

People who have a problem with this concept should weigh their options properly. Those people would not see the value of paying all these premiums and having no return. If it's an investment that they want, whole life insurance may be a good option for their situation. Whole life insurance would provide the peace of mind that comes with life insurance in addition to a cash value. The policyholder would pay a bit more each month but that difference goes to the cash value. This cash value may be used as an investment tool.

Taking this decision based on either the intention to replace an income or the intention to invest makes all the difference. These goals are almost the opposite when it comes to life insurance. If you liked this video, make sure you demolish that Subscribe button and join our notification squad by hitting that bell button.

------ Contents of This Video ------

00:00 - INTRODUCTION
00:26 – THE CONCEPT OF LIFE INSURANCE
00:36 – FINANCIAL CONTINUITY
00:48 – INCOME REPLACEMENT STRATEGY
01:35 – KIDS & OLDER RELATIVES
01:50 – RETIREES
2:15 – WHOLE LIFE INSURANCE

Useful Resources:
https://www.prudential.com/
https://www.statefarm.com/
https://www.newyorklife.com/
https://www.northwesternmutual.com/
https://www.transamerica.com/individual/
https://www.mutualofomaha.com/
https://www.usaa.com/?akredirect=true