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Importance of life insurance

If you were born, someday you are going to die.  That is the cold and dry truth.  Dying when you least expect it can have a catastrophic affect on your family.  Still, it is a topic most people don't really want to talk about.  It is also a subject that we don't seem to cover with our children.  Teaching our children about life insurance, and fiscal responsibility is one of the greatest gifts we can give them, as they become independent adults.

There is a real divide between the people who automatically  buy whole life insurance (a policy that has a cash value reserve built up that is accusable through loans at any time during the life of the policy) when they are young, and the folks who do not invest in insurance until they are married with children.  The cultural divide between the two groups is also the interest divide.  The latter group generally buys term insurance because the premiums are so much cheaper in the beginning.  However, they lose the tax-free savings from the value accrued in the whole life policy.

If you are a parent, one of the best things you can do for your family is invest in life insurance.  While no one expects to die when they are young or in their prime, accidents do happen.  A family suddenly losing an income can mean more than the loss of that parent; it can also mean a loss of home.  Whole life can help when the accident is catastrophic but does not end in death.  The cash value can be used as a loan to help compensate for the loss of income.

Another thing you can do as a parent is teach your children the importance of securing a policy once they turn 21.  Teaching your children that a part of independence and acting responsibly as an adult is securing life insurance, and making sure they have the discipline to maintain the policy  ensures they will have financial avenues open to them.  It may be that in this economy where so many young are not gainfully employed that you will have to help cover the premiums.  You are helping them build a stable financial future.

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