Most people have misconceptions of what life insurance ought to accomplish , and it usually takes a tragedy or a life changing event to realize the importance of having life insurance. As a licensed life insurance professional, I have tried my best to uphold the profession by providing an unbiased view when talking to potential clients or to people in general.
Take for instance, my mother-in-law who passed away recently. She did have a whole life insurance policy that was purchased some time ago. My wife called the insurance co today, and to her surprise, the customer rep told her to provide certain information and once they are able to verify the information, the cheque should be mailed within 5 business days.
I think this is when most people start asking what's the catch and why is the insurance company so easy to deal with. I just wanted to share the story to let people know that there is use for insurance after all, and if planned properly, can provide someone you love a relief from all the financial obligations associated with death. Or, if you are lucky, maybe an inheritance, as well.
And as always, proceeds from a life insurance policy is tax-free.