What Is The Purpose Of Life Insurance? 
The original purpose of Life Insurance - the reason it was created is to transfer the risk of a person dying too soon from that person and their loved ones to the insurance company . Generally if a person dies while still having debt or not having enough money to care for their heirs , that person has `` died too soon '' . In a lot of people 's opinions dying at any time is too soon ! But that 's a philosophical consideration . Over time Permanent Life Insurance has come to play an important part in the financial well-being of insureds while living . Term insurance on the other hand remains solely for the purpose of insuring against a person dying too soon . Peggy listed a number of uses for Permanent Life Insurance , and I would add that the cash value of whole life insurance is a terrific asset for use in personal banking applications . For more information see WEBSITELINK 