The amount of coverage and the type chosen can make a big difference throughout an individual's life.
If the income earner of the family dies, is permanently disabled, or suffers a critical illness, the family's financial future can come into question.
Young people who are single seem to feel that they can't get seriously sick, injured or die unexpectedly.
This mentality may make them feel they don't need life insurance.
However, in Australia alone according to 2002 statistics, 30,000 young people were injured badly enough in automobile accidents to require hospitalisation.
Nearly a quarter of breast cancer cases diagnosed in 2001 involved women between 20 and 49 years of age.
The impact of such occurrences can adversely impact the individual's entire life.
It is essential that an alternate source of income be available should a devastating event happen.
The amount of coverage recommended for a single person is ten times his annual salary.
Sad to say, six out of every ten people - even those with families - don't have enough life insurance to carry their family through more than a year should they die.
Less than half of young couples who have an income or assets of more than $50,000 have life insurance, and only fifteen percent carry coverage for critical illness; yet 88% and 84% respectively insure their home and its contents, and their cars.
Aren't their lives more important? Young couples hope for a financially independent future, whether they decide to have a family or not.
They don't want to think about, much less plan for personal disasters.
One advantage to purchasing personal coverage is that the younger someone is when they purchase their policy, the less expensive the payments are and the more coverage they will be able to afford.
If one family member became permanently disabled, government benefits may provide a small income, but whatever assets have been gained will shortly be gone.
When children are added, even though income increases, there is more reason than ever to have adequate life insurance coverage.
As the family matures, finances for university expenses and Taft education for the children, home improvements, or a new car need to be protected should disaster strike.
Imagine the impact that loss of income would have on the family's current lifestyle.
About 1,500 senior adults were killed in automobile accidents in Australia.
One in three men and one in four women will contract some form of cancer before age 75.
Protecting the wealth accumulated can be accomplished by having understood and planned ahead with the purchase of the right life insurance policy.