Life Insurance 101

Insurance is better to have and not need, then need and not have.


The quintessential problem that most people have about insurance is that it is too abstract a concept. It almost seems as if you are paying money to bet that something bad will happen to you.


However, let’s face the reality of life: the world is a tough place. Here are some actual deaths from things you wouldn’t expect in just the past year:


  1. Constipation — 2,167 deaths
  2. Contact with agricultural machinery – 4,183 deaths
  3. Accidental suffocation in bed – 10,206 deaths
  4. Fall from tree – 1,413 deaths


Silly causes aside, death is a very real truth that all of us would have to face eventually. Having lost both my parents in recent years—one from lung cancer and the other from hepatitis—yours truly is too familiar with the harshness of life, and thus a true believer in the gift that insurance actually is. Let’s take a look at the real causes of death throughout the world:

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As you can see, the top three causes of death in the world remains primarily medical: heart disease, cancers and AIDS (mostly in Africa).


However, what is still surprising is that the fourth biggest cause of death among 15-49 year-olds worldwide is road accidents.

In the United States, the fourth leading cause of death is unintentional injuries (accidents), according to the Center for Disease Control (CDC) 2015 database, killing 146,571 Americans.



Which brings us to this pressing question: how will my loved ones who depend on me, continue living when I am gone?

This is where the importance of life insurance begins to come into play.

Principles of Life Insurance


The entire concept behind life insurance is to provide those who matter to you with a means to survive when you are no longer there for them. While most of us probably will not suffer a premature death, the sad reality is that unexpected circumstances each and every day:


When was the last time you had more traffic than usual on the 805 freeway, because of an accident?


That person who suffered the crash could have been any one of us, and if it were you, how would your family survive without you? That is where life insurance becomes truly invaluable: it gives your family a means to survive.


Life Insurance Principles

  1. If I want my loved ones to continue being provided for after my death, I must ACT BEFORE it becomes a pressing need.
  2. If I don’t want my death to change all of my family’s hopes and dreams that we had together, then life insurance gives them that option.
  3. I should get as much life insurance coverage as I can get because my family deserves as good a future as we have dreamt of.