Many financial experts recommend getting at least one life insurance policy as part of personal financial planning for those who have dependents. It does not matter whether you decide to buy a whole life or term life insurance policy.

With this type of insurance, you do not have to worry about your dependents in case anything happens to you. The insurance company would pay death benefits to your family members or dependents. Even your funeral expenses can be covered with the money. Since there is no guarantee on how long a person can live, taking this type of insurance as a precaution is a wise step.

A standard policy usually includes death benefits and payment upon maturity date. The maturity date is usually the retirement age of a person. Nowadays, there are many types of life policies. But, generally, an annual dividend is given to the insured. The amount of dividend is dependent on the business performance of the insurance company and other factors.

So, if a person does not take out any money from the cash value or dividends, the total sum of cash value and dividends can capitalize to a great sum once he or she reaches retirement age. This total sum can be very large depending on the dividends, amount of policy coverage and other aspects. The money can be used to open a fixed deposit account with a high interest rate.

In such a case, even the earned interest money might be sufficient to cover the monthly expenditure of the person. Alternatively, the total money can be divided into two portions. One portion can be deposited into a fixed deposit account for monthly withdrawal of interest money. The other portion can be put into a savings account. With some money from the savings account and interest money from the fixed deposit account, a person's retirement might be comfortable.

To summarize, a life insurance policy is a wise investment, immaterial of whether you are single or married with family. Apart from death benefits for a person's dependents, the life policy offers a chance to enjoy a comfortable retired life.