Is Life Insurance an Important Expense?

Life Insurance is an expense that many people allow to become "an economic casualty" during difficult financial times. But is that really a wise decision? Let's face facts, life insurance is something that allows us to provide for our family and loved ones in the event of our demise. The reality is that regardless of whether we are experiencing financial challenges or not, the purpose of life insurance is to provide our loved ones with a "safety net," in case of the unexpected. That is not something that should be "negotiable." It is not something that should be allowed to be compromised because of a challenging economy. This is a variable that "does not," and "should not," be on the table for possible compromise. It should not be on one's standard budgetary "chopping block," that your average everyday commodity can afford to be.

Sometimes we fail to put things into their proper perspective. By revisiting the original reason why you acquired it in the first place, or why you are thinking about obtaining coverage, you reinforce its need. It's like car insurance; however, it's for a person, and a family. The difference is that when your car is in a terrible accident and is considered "totaled," you simply file a claim, wait for the insurance check to arrive, and then go shopping for another car. In this case, if the unthinkable happens and you lose your life, you can't be replaced like a totaled vehicle can be. In this case, the most important person in your family, "you," are no longer around. Not only will your family suffer the devastating loss of a loved one, but on top of that, they may suffer a tremendous financial burden that never goes away. Think about that, it may "never go away." It's a double edged sword. The loss of your family's income is not something that can be quickly or easily replaced. Even if your spouse can go out and seek employment, can she be readily hired? Will her income match yours? Will she remain employed? Will the job market prove to difficult? Will she be "pushed" aside for younger employment applicants, or prospects?

You have to look at this realistically, because the drop in income will likely be tremendous. Will they be unable to meet common everyday financial needs? What would happen if your spouse could no longer afford the family's current mortgage, or rent? And, what about the "unknown?" What type of "toll" would they experience as a result of an unsecured future? Would they be forced to move? Would they have the resources to be able to move? Funeral expenses alone can bankrupt a family. How would your children be told of such circumstances? Would they have to scrimp to get by?