Prepare for future uncertainties with life insurance. Term life insurance is a widely used form and is usually the preferred choice for most circumstances. It’s generally procured to handle expenses such as funeral costs, debt clearance, college education, and income replacement. Particularly fitting for families, term life insurance not only offers financial security in case of an untimely death of a provider but is also wallet-friendly and fits most budgets.
Funeral Costs
If you were to pass away suddenly, would there be enough money for your funeral service, coffin, and cemetery plot? Funeral expenses can run into several thousands of dollars. A typical funeral can cost around $10,000, depending on where you reside and the grandness of the service. The question is, would your surviving family members have enough funds to handle funeral expenses without falling into financial hardship?
Mortgage/Debt Clearance
For homeowners with a family, obtaining a term life insurance policy that covers the mortgage cost is key to ensuring your loved ones continue living in their home. Likewise, consider other sizable debts you and your partner are accountable for. Jointly held debt requires careful planning when determining coverage.
Education Expenses
Term insurance can also guarantee the availability of funds for your children’s higher education. If college costs are a significant financial worry, it’d be sensible to buy a term policy covering the duration of the university years.
Income Replacement
The primary purpose of life insurance is to replace the income of the breadwinner. Individuals contributing to the family’s lifestyle should have life insurance. If the income of one earner was to cease suddenly, how soon would your family start struggling financially?
Term Insurance is Budget-friendly
One of the major benefits of term insurance is its cost-effectiveness. While it’s something you hope never to use, having it gives peace of mind for future uncertainties. Life insurance is generally cheaper compared to many other insurance types. A healthy 40-year-old man, for example, can procure a $500,000, 20-year term policy for only $34 per month.
Term Insurance is Adaptable
Term insurance policies can be altered to suit your specific needs. While 20 years is standard, you can opt for a 10, 15, or 30-year term. You can also add extra features to your policy termed as “riders”. The child rider and accelerated death benefit rider are two common examples.
Delaying the purchase of life insurance typically means higher premiums, which increase with age and potential health issues. Keep in mind, a life insurance offers the peace of mind that allows you to put future uncertainties aside and focus on the present.
