The Importance of Term Life Insurance

When families make the decision to purchase term life insurance, they are often in the process of experiencing a major life-altering event such as getting married, starting a family, or purchasing a home. In fact, there are many good reasons for purchasing a term life insurance policy. And most of us, at some point in our lives, will realize that owning term life insurance is very important to ensure our sense of security.

Can you even imagine the anxiety of driving on the freeway without auto insurance? All of us know that at some point an accident is almost inevitable. But if you have auto insurance, your car will be repaired, and your medical bills will get paid. Term Life Insurance works the same way. It ensures that your family will have preplanned financial assistance to help offset the loss of your earnings while adjusting to the emotional difficulties and financial consequences of your untimely departure.

Transferring Risk

Since its inception, insurance has been all about transferring risk, thereby avoiding the anxiety of potential loss. When you purchase life insurance, you are making a plan to be sure your family will be safe from the effects of losing your contribution to the household income. You want to be sure that your family won’t have to uproot their lives and change their living standards in the event their income level is affected by your premature or unexpected death. And you can continue driving through the highway of life, without having to suffer the anxiety of wondering what will happen to those who depend on your earnings.

Tangible Expression of Love and Concern

People have suffered deep feelings of remorse and regret when they became ill and realized their loved ones were not going to be financially protected after their premature death.

Most people really do not want others to be held responsible to pay off any outstanding debts that were incurred during their lifetimes. A life insurance policy makes good sense because the proceeds can help pay money owed, such as credit card debt, leaving your loved ones in a better financial position.

It is not morbid to responsibly remember that the tax-free proceeds from life insurance will provide your loved ones with a tangible expression of your concern and thoughtfulness.

Thinking about your own mortality is not pleasant, and some people try to avoid contemplating thoughts of their own demise. For example, as

W. Somerset Maugham said: Dying is a very dull, dreary affair. And my advice to you is to have nothing whatever to do with it.¹

It is, as if by avoidance, we can delay having to face the fact that dying will happen to all of us. Our routines continue and we make new commitments while not knowing whether our deaths will be premature.

In contrast, imagine the security of knowing that by purchasing life insurance, we are setting an example of responsibility and caring. There will be cash to help pay for a wedding, help with a down payment on a home, or even funds to help finance an education. Think about it. A term life insurance policy will provide you with the actual ability to have a positive influence on the future of those you love.

¹ http://www.quotationspage.com/quotes/W._Somerset_Maugham