Who needs insurance - rich or poor?

Who really needs life insurance Rich or Poor people ? Poor cannot afford it and do rich require?

Everybody needs life insurance, particurly people who are not wealthy. Everybody can afford life insurance, just that majority of people don't know that they can because they keep spending all their money on things that have no use.

Lets say you are married. You live in a home and pay about $900/month into your mortgage. You have 2 kids. You have 8 credit card bills totalling around $20,000. Your annual income is $20,000 while your spouse makes $15,000. If something was to happen to you, would your spouse be able to maintain the same standard of living? Of course not. She will probably have to sell the house and rent an apartment. The credit card debt will follow her everywhere until she dies. If you reverse the situation, then you going to get stress out and worry about what to do. That's why majority of people need life insurance.

Wealthy people usually don't need life insurance. If they do, that's because they notice a potential short fall in income that can affect the family.

Life insurance should only bought for one reason: For protection of income and be able to maintain the same life style when a love one dies.

feel that poor people need it more than the rich

How about rich and poor need insurance.

Both! The main purpose of life insurance is to cover the survivors of the person who dies. Life insurance can be used to pay off debt, cover burial expenses or take care of surviving children. Life insurance can be very important, especially if you are leaving a spouse that doesn't work, young children, or debts. In the event of your death, the life insurance company would award the amount of the policy to your beneficiaries. Most people buy life insurance to replace income that would be lost if a wage earner passed away. Life insurance proceeds are tax-free, so it can also play a role in estate planning, cash accumulation, retirement funding, and the transfer of wealth to beneficiaries. There are many types of life insurance on the market today. The cost of a policy and features it offers vary depending on the type of insurance you choose.

The poor may need it more than the rich. What it comes down to is exactly this - "What are your life insurance needs?"

Rich people may have investments and assets that will remain with the family through a trust if someone should die.

The poor may have greater financial difficulty if the sole income earner passes away.

It isn't necessarily how much life insurance but the actual "need" for life insurance protection. I believe it would be the poorer family who needs it the most.

Hope that helps!

Every Earning Person on this Earth should get himself insured to ensure that in case of him or her becoming unable to earn, his dependent dosn't get left out economically .

I feel that poor people need it more than the rich. I mean, when it all comes down to it, rich people could pay for their medical bills a lot faster than the poor.

Obviously, neither "needs" it.

Realistically it is a suckers game.

The 'need' for life insurance does not always arise as a result of one's wealth. Many poor people do not need any life insurance if they do not have anyone who depends on them. Many wealthy people do not need any life insurance because they have created enough wealth to sustain themselves and their dependents.

Many poor people need life insurance to create the wealth that their dependents need when a breadwinner passes away. Many wealthy people need life insurance (properly structured) to handle their estate tax bill that comes due when they pass away.

This is a complicated question not easily answered with a uniform answer for everyone. Go talk to a licensed insurance professional to get a clear picture.

Good Luck

It all started with Property Insurance

Everyone knows what life insurance or property insurance is and usually knows something about how it works but not everyone knows the history and reasons for and behind insurance in general. In the most basic sense, insurance is the compensating of a person or business for a loss. There are many types of insurance to cover any situation including, auto insurance, health insurance, dental insurance, home insurance, personal insurance and even pet insurance.

A type of Property Insurance first became popular about 3000 BC in China. Chinese merchants, as well as their investors, wanted to ensure that they would see a profit from their goods that they shipped overseas. In the event that a ship was lost at sea or pirated, an insuring partner would reimburse the owners of the ship and goods. To pay for the loss the merchant would be sold into slavery to the insurer until the debt was repaid. This was a mutually beneficial arrangement since a merchant could not afford to pay for the lost goods or even to buy a ship unless someone invested. The merchant could become very rich and even own a fleet of ships if he was successful.

Of course property insurance wasn't just available in China. In Babylon merchants and investors devised a system of contracts in which the supplier of money for a trade venture agreed to cancel the loan if the trader was robbed of his goods. The trader who borrowed the money paid an extra amount for this protection in addition to the usual interest. As for the lender, collecting these premiums from many traders made it possible for him to absorb the losses of the few. This arrangement proved to be more appealing and sensible than the earlier one. Later this series of contracts was extended to include provisions for a family's home and even covered murder, the start of life insurance.

Of course news of a good idea spread fast. Soon the Phoenicians and to the Greeks, Hindus and Romans also had similar concepts in place. Each culture had it's own interesting twist on the laws. For example the Roman's had a "jettison" law which stated that if a ship's crew had to lighten the ship by throwing things overboard then the loss would be split between the merchant and the insurer. In fact, this law still exists today as part of our own laws for protection against losses at sea and the very word "insurance" is derived from the Latin word for "security."

Other forms of insurance terminology are also derived from ancient practices of Mediterranean commerce. The origin of the word "underwriter," for example, is Italian, from an old system of signing contracts on marine insurance. Those businessmen who had agreed to share in the profit or loss on a certain venture signed their names underneath the contract, writing at the same time the amount of risk assumed by each. It is possible that "policy" is also of Italian origin - derived from "promise" - although other sources have been claimed for this word.

Things changed dramatically in the 17th century. In 1666 the Great Fire of London finally and forcibly demonstrated the need for fire insurance. The primitive fire-fighting methods of the day were virtually helpless against the hungry flames that roared unchecked through narrow streets reducing timbered dwellings to ashes. The Great Fire of London burned for four days and nights. It razed 436 acres, devouring 13,200 houses, 89 churches (including Saint Paul's Cathedral), the Custom House, the Royal Exchange and dozens of other public buildings. Only six people perished in the flames, but hundreds died from shock and exposure.

Insurance protection as we know it today can be traced to the aftermath of that tragedy and a man call Nicholas Barbon. Profoundly shaken by the Great Fire, Barbon promptly opened an office "to insure buildings." This venture was apparently successful, because in 1680 he founded a partnership and established England's first fire insurance company, The Fire Office, to insure brick and frame houses.

The first mutual fire insurance company was established in 1696 with the cumbersome name of "Contributorship for Insuring Houses, Chambers, or Rooms from Loss by Fire by Amicable Contributions". This company was highly successful, eventually being absorbed by the Commercial Union Assurance Company, Ltd., of London in 1905. In 1704 the Lombard House inaugurated fire insurancefor household and business goods, and in 1762 the first mutual life insurance company was formed, The Equitable of London.

From this brief accounting of history we can see how insurance came to be.

Fortunately for us we no longer have to sell ourselves into slavery if our car is stolen. However we can be confident that we will be compensated for our loss. Without people wanting to secure their investments and great tragedies throughout history we may not have insurance as we know it today and what a loss of peace of mind that would be.

By understanding the history of insurance it is easy to see that insurance in its purest for is the compensating of a person or business for a loss.

In answer to your question rich people have more businesses and more to lose so would have more of a need for insurance in general. However Life insurance for poorer families serves the purpose of creating an estate for the survivors of a family member who has his/her accumulation period cut short by an untimely exit.

If you were a rich person and your house was worth 3 million dollars would you pay 10,000 dollars to insure it of course you would because rich people get rich partly because they under stand the value of money in this case it is cheaper to let insurance company pay to rebuild house than to use your own assets.If you were poor you could not afford to rebuild without insurance the answer too your question is both need insurance.Life insurance can pay to bury someone or it can help rich people pay estate taxes on the estate that they pass on to relatives at the time of ones death.

Everyone should have insurance, but the question is how much...

If you have a lot of assets to protect, then you need more insurance compared to someone who doesn't have a lot... we are talking about the amount of coverage, not whether or not to have insurance...

The only people that really "need" life insurance are the people that want their loved ones to not feel a financial burden due to their death.

Only the unfortunate truly need insurance.
Think about it, every pays into it but only some actually use it.
That's how they make their money.
So, although I wouldn't recommend risking being uninsured, just remember, you are paying for someone else's accidents, etc.

Middle income people need it the most. They have assets they might lose if they have an uninsured loss.

Rich people can always pay for their losses. Poor people can always get some sort of help and they have no assets to protect, but middle income people don't have a lot of money and debtors will take everything they own if they have an accident or illness with no insurance to cover it.

insurance is for all. rich, poor and members of the middle class. life is precarious and therefore the occurence of an unknown event is unforseeable. everything in life is uncertain, even your life (because death is certain but when remains a big question). life assurance is an investment portfolio. you need life assurance to make financial provisions for your kids' school fees, your burial, and for the benefits of all your dependant. because of arguements raised, life assurance portfolio has been repackged to serve you while you are still alive. the maturity of life assurance policies have been designed to suit customers even as they deffer. Life assurance policies are also flexible and can be converted to any other policy of your choice or terminated on your request with some surrender value paid to you. for more info mail nedaction2007@yahoo.com

Well, most of the middle class that become poor do so because of uninsured medical events. So the middle class needs it to not become poor, and the rich need it to shift the costs to everyone who is insured, so the poor (who have access to free medical care in the US) are the ones who need insurance least.

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