Life Insurance & Investing Center

Human Life Value and Other Terms like Life Insurance Quotes June 25, 2009

Human life value is the capitalized monetary worth of the earning capacity of an individual devoted to the support of his family during his working and active lifetime.  While the so-called person’s economic value, is the amount of income he or she is expected to earn for a given period of time.
Two basic concepts are fused for an appropriate need of human life value. This factor is crucial in life due to several reasons. The breadwinner assesses an estimated requirement of life insurance for him/her to financially secure the family in case he/she dies premature.
The concept of human life value is taken into account under certain parameter by considering the annual income of breadwinner with respect to the age of retirement which is assumed 65 years and the current age subtracted from that age. The motive behind this assessment is to check how many active years are left in a person’s life to work actively.
Because when a person retires how he or she now support the family when there is no more income.  This is where life insurance and its corresponding value come in.  This would give a glimpse of how much insurance policy you would need to purchase.
When you go through life insurance quotes and calculate age and premium expected amount to be offered at maturity is calculated. Financial safety arrangement is easy and you are satisfied that in case of sudden death your family will certainly have that much of money.
In the life insurance principle three major threats to the continuity of income is considered genuine for fund release. These basic threats can be premature death, disability and old age out of which anyone can be the first to enter in a policy holder’s case. Policy holders get benefited in all three cases directly or indirectly.
It is also in this respect that life insurance would come in handy.  Life insurance can be a replacement of income when any of the three happens to a person.  Life insurance guarantees replacement of a breadwinner’s income at a cost of one to two cents for every dollar of protection.
Beneficiaries of a policy holder who dies premature death get family protection fund from life insurance. It is of course great financial security. Such financial support is a continuation for grieving families who loose the breadwinner. When one faces disability or is an accident victim life insurance rescue by offering clean up funds for treatment and medical expenses.
For old age, life insurance can act as an emergency fund or as a guaranteed savings.  Because we all know that when we retire there is no more supply of income and instead we rely on the government help thru social security services but sometimes this is not enough.  Life insurance can act as an additional fund that can be used for the remainder of your life.
Don’t assume that term life insurance cost and other insurance costs are financial burden for you. Whatever premium you pay today is for the sake of attaining peace of mind for yourself and your family. You are securing yourself from uncertainties and offering financial stability to your family to avail in future.
Aside from the above, the other uses of life insurance could be is education fund.  There are insurance companies offering the so-called educational plan that would allow the insured or the policy holder to save up for the tuition fee at today’s cost of money.
Besides the above mentioned benefits life insurance is wonderful investment option as well. The variable universal life (VUL) and insurance have great connection. The dual benefit you have is having insurance and at the same juncture investing a portion of your premium fund in the investment to achieve more benefits. This flexible approach helps your money grow swiftly.
Risk factor involved in VUL is that when stock prices decrease benefits including death benefits go down and once there is rise in the stock market your policy automatically has tremendous growth.
Benefits mentioned above are crucial and identical with human life value. They are incomplete without each other’s active participation for belief in insurance.