It took an event like the current recession for many people to finally recognize the importance of life insurance in financial and retirement planning.

Financial planners have always advocated the use of life insurance to cover the “what ifs” in your overall plan. “So, everything is going as planned and you’re meeting all of your investment objectives, but what if your husband dies prematurely and you don’t have his continued income to keep things going in the right direction?”

Well, what if a recession comes along and wipes out half of your life’s savings and then your husband or wife dies and leaves you without their income to help make up the loss? Well, what if you carry enough life insurance to make up the loss until the loss is made up? Then if your husband or wife dies you will only have a tragic emotional loss to deal with and not a financial catastrophe. I hope I don’t come across as callous about this, but one thing you don’t have any control over and the other you do.

So, if it makes sense to protect against that uncertainty during a recession, the same logic rings true during more normal times. Whether it’s a sudden loss due to an economic meltdown, or a loss that just gets worse each year due to the loss of an income, it’s still a loss.

Bottom line. Just in case there is anyone out there who hasn’t figured this out yet, even with recent term insurance price increases, term life is so affordable that it actually trumps the old saying, “if it sounds too good to be true……”. Life insurance really is that good a value.