When considering life insurance it is important to consider the reason it is being purchased for. Life insurance is generally purchased for a lot of coverage and a very low premium. In most cases, this is a great idea for a family with young children. If the main money maker should die then this would be necessary in order to provide for the family. It will help to keep the family going while the children grow up.
There is also permanent life insurance that is much more expensive due to the fact that it will cover a person until they reach the age of 100. This is considered the whole of a persons life span. This type of coverage has a cash value that is readily available to the policy owner in the form of a loan should an emergency arise. Cash value policies like this are often used to maintain a premium level as people age.
Many startling statistic from the Goldsmith Insurance Agency shows one percent of all term life policies purchased ever result in a payout claim. This may sound very shocking and for this reason many consider these policies a total waste of money. That would of course depend entirely upon the persons perspective. It’s similar to someone who buys fire insurance yet never needs to use it, it’s there if you need it but few ever do.
If a permanent life insurance policy is kept in force it will result in a claim at some point in life. Many times these well planned life insurance policies also entail the purchase of both types of policy. One for when the family is young and in need should the main money earner die and the other for after the children have grown up and left home in order to cover those final expenses.