Many years ago, you were born. You learned life lessons and you made a couple of mistakes, but all in all your parents raised you to become a decent human being. You chose a career, you saved some money, and then you started a family of your own. With college funds open and growing for your 2-year-old twins, you've realized by age 35 that everything in your life revolves around your keen financial planning for the future.

The following are the top three reasons why you are correct; it is highly important to plan for your future to insure:
1. Protection of your family members
2. An easy transition for your family if you suddenly pass away
3. A guaranteed financial benefit for you and/or your family regardless of what happens

Insuring the protection of your family members: One day you invest in a life insurance policy because you've heard the stories of sudden death in a family, leaving the grieving children with the unexpected burden of their parent's debt and funding a proper funeral. You know that you're a better planner than grandpa Joe and that you would never want to burden your mourning family by the abrupt loss of your income. In situations where a prominent family member's income is suddenly terminated, it can be traumatizing for the rest of the family, especially if there are children involved.

The end result could be a forced selling of the home and other assets that were not yet purchased in full. Sometimes the sheer burden of yearly taxes on a large piece of property can be burdensome enough for a family to bear once an expected salary disappears from the income. Life insurance exists to prevent families from being stuck in situations such as these.

Insuring an easy transition for your family if you suddenly pass away: Property aside, a huge concern of yours is the guarantee of continued happiness of your family if something unexpected should happen to you. After all, Kimmy and Jimmy seem to have grown quite accustomed to the Baby Gap - wouldn't want to destroy the hopes, dreams, and comfortable standard of living that your hefty lawyer salary has been providing for your family.

The money sitting in Kimmy and Jimmy's college funds shouldn't be cashed in for emergency food money when they're 14, but if you're gone then there might not be a way to promise your children the lives you intended for them to have and that you worked so hard to plan for.

There is a guaranteed benefit for you and/or your family regardless of what happens: People purchase life insurance to protect their family members, allowing the family to maintain a standard of living, maintain the home, and fund the education of their children. It can also be used simply to insure an easier transition for the rest of the family at the time of the policyholder's death. However, planners in the past have been deterred from investing in life insurance policies because there was no promise of a return investment should the policyholder live a long and healthy life.

Well little Kimmy and Jimmy will grow up and build their own lives, and with time, you may find that it is more of a financial difficulty to maintain your insurance premium than back when you were winning lawsuits. With time, your policy could become more of a burden and less of a mode of protection for your family. Your nine grandkids are throwing you an 80th birthday bash next week at Kimmy's Malibu mansion; clearly the financial protection is no longer needed. Nowadays, your policy can be sold in a secondary marketplace where the policyholder benefits financially by selling their policy for cash.

The amount of cash your policy is worth is determined by your current life expectancy and overall health, and your life settlement will ultimately be based on a calculation. The end result is always a cash settlement yielding more money for you to spend while you are still alive than the amount of money that you had previously invested in the policy you chose many years ago.

Your family deserves protection and financial stability, and you, the investor, deserve the peace of mind that comes with knowing you are safely investing in your family's future. The system of obtaining cash for life insurance settlements is what makes current investments safer than they used to be. In the end, you can rest assured that the 35-year-old who knew back then that financial planning was smart, safe, effective, and beneficial was 100% correct.