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A good life insurance program does more than just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death —funeralexpenses, taxes, probate costs, the need for housekeepers and child care, and so on. And these cash benefits should provide for your family's future needs as well, including college education for your children and part or all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

Some types of life insurance- Endowment/Money Back policies — have a cash value that you can obtain by cashing out the policy or by borrowing against it. Though it can seem attractive, most financial experts agree that this feature should be seen as a secondary purpose of life insurance. Another type of insurance is pure term life policies as well.

Do You Really Need Life Insurance?

If there is someone who would suffer economic hardship if you died, then the answer is yes... you need life insurance! Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children's' education. But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household - and that can be a significant new expense.

If you are married without children or single, then you may need life insurance to protect your partner or surviving family members against the costs associated with your death. Child education and administrative fees, outstanding debts, special obligations, are costs that all of us must consider. And, they can add up quickly. Unless you already have sufficient financial resources, your survivors will probably need life insurance to cover these expenses.

What Happens To Your Family If You Don't Have Enough Coverage?

Under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. Depending upon their current financial resources and ability to "get back on their feet" emotionally and financially, your family might be forced to move to a less desirable home or community, abandon education and career plans, reorder family priorities (such as the amount of time spent with the children) and, in general, cut back on the quality of life you have worked hard to achieve.

Your family might even be forced to go into debt simply to pay the expenses, like funeral costs, taxes, and medical bills that result from your death. A moment's reflection will tell you that the lack of sufficient life insurance coverage when a loved one dies can have devastating consequences for a family...consequences that can last for years.

Life-based contracts tend to fall into two major categories:

• Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
• Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms are Endowment, Money Back, Immediate Annuity, Deferred Annuity, and Unit Linked Insurance Plans.

Life Insurance - Term Life Insurance - Whole Life Insurance –

With a policy in place today, you can:

• provide security for your family
• protect your home mortgage
• look at your estate planning needs
• look at other retirement saving & income vehicles

People buy life insurance because too often most of their other plans fail. They buy it because they realize the need of protection for their families after their death; or for a reserve for emergencies and additional income for later years.

"With premiums for term life insurance at their lowest in years, you can get the right protection and a great value."

Did you know that a life insurance policy can?

• Provide cash and income needs on and immediately following death such as unpaid bills and taxes and other obligations.
• Prevent a family's suddenly dropping from its accustomed standard of living after the death of the breadwinner.
• Provide continuous flow of funds for the living spouse.
• Allocate income funds for the children's education.
• Provide a retirement income throughout old age.
• Provide a reliable savings plan for the future.
• Supplement income when earning power is destroyed by illness of accidents, such as covering medical expenses.
• Furnish surplus earnings for the investors should disaster strike.

The bottom line is this: While Life Insurance is not always the insurance product at the forefront of your thoughts; Life insurance is always a friend in time of need.