LIFE INSURANCE

We need life insurance to plan for the future. Life insurance protects our loved ones to help replace our income. If you die prematurely, life insurance will provide tax-free cash flow to your loved ones. This income can be used to pay for final medical bills, legal, funeral and other costs

Unless we are extremely wealthy, life insurance is what we use to anchor the foundation of financial security for our families. It could protect our financial resources. We never really know what will happen tomorrow. It should help our families plan for the uncertainties of life. It will give our family a chance to plan for the future. If the father (or mother) and breadwinner dies, he (or she) can leave money so that his family doesn't have to work for a few years and can adjust to life without him.

My sister's husband passed away a few years ago. He was only in his early fifties. He left her with three children to raise on her own. She had been working full-time but, then quit her job to deal with the problems caused by the untimely death of her husband. Her children needed her to stay at home because, although they were "good children and students" before her husband passed --They quickly became problem children and students. One of her boys temporarily got kicked out of school for pushing his fellow students. He needed psychological guidance from a professional for several years to deal with his Daddy's death. She was able to get him back in a regular school, after a bit of counseling.

The large lump sum of money she received allowed her to purchase their home and their autos without having to work for several years. Of course, the money didn't replace her husband. But, the money helped her get by. She now has recovered (if one can EVER recover) from the loss of her husband and is back at work full-time again. Her kids have graduated from high school and she has just one left in college now. She wouldn't have been able to accomplish this without the $250,000 (or so) from her husband's life insurance policy.

Now, I realize that I sounded old fashioned when I spoke about the "husband and breadwinner". I am a single woman, myself. I fully realize that today, woman hold major roles in society and oftentimes are the breadwinner for their families.

WHOLE LIFE VERSUS TERM LIFE

Some financial adviser's argue that whole-life policies are NOT superior to term life policies because one can invest in IRAs, 401(k)s, and other tax-advantaged savings vehicles that have tiny commissions, much higher yields and complete portability. I disagree entirely. Most people do not possess the financial acumen to safely invest in those types of resources. And yes, people can hire a professional to handle their IRA'S, 401K'S and etc. But, then where is the savings?

And then, the CHAOS of what's happened in the past two years is enough to scare the be jabbers out of your average person wanting to invest. I know of many professionals that have lost so much money in the stock market that they are now unable to retire and have to either postpone their retirement or even head back to work after already retiring!!! Not a pretty picture when all you really have to do is plop the money down and purchase life insurance. It is GUARANTEED TO BE THERE.

Guest Author

Meghan Furst is an insurance agent. I have a blog @ htttp://www.needabandaid.com. Please stop by, read my articles and COMMENT. Or ask questions. I Loove questions and will personally answer them.