Do You Need Term Life Insurance?
Life insurance is meant to guarantee your family an income should something happen to you. If you’re uninsured or maybe even under insured, there are a few things you might want to consider. If you were to be deceased today, would your family be able to keep the home they live in? Think about it, mortgages still come due even after your death, and the spouse is left holding the mortgage bag on their own. This problem is compounded if there is a second or third mortgage on your home.
Another thing you should consider is whether they could still live in the manner to which they have become accustomed. Would little Cindy have to give up dance lessons because there are no monies available to continue paying? How about those braces Mikey is going to need soon? How would they be paid for with your income gone and no insurance coming to your family? It’s bad enough that your death has put an enormous amount of stress on the family, but what type of hardships will they face with without you, your income and no life insurance? Your family could lose the house, the car and anything else which you are currently making payments on. Certainly this was not your intention.
Even though you may have saved and invested money and prepared for your untimely death in other ways, and you feel certain your family would be well taken care of financially, it certainly isn’t worth the risk for your loved ones. Rarely do savings and investments alone carry a family through the monetary crisis that the death of one of the bread winners causes. Young families, those who are just starting out, are particularly at risk because their debt is usually high and the costs of caring for children are ever increasing. One factor is that the young family’s income may have not had the time to reach its full potential. Another factor which weighs against the new family is that the family savings is very low or even non existent.
So now you have an idea of why you may need to look over your insurance policy to see if you are properly insured, or if you don’t have life insurance, you should feel the need to get insured now before it’s too late. Okay, so I need life insurance, but which type is best for me?
The least expensive type of life insurance is term life insurance. The reason it is the most cost effective insurance is that it is based on the current age of the policy holder. Most life insurance companies also take into the consideration of whether or not the insured is a smoker. Term life insurance also is usually purchased in terms of years. You can get one, five, ten and twenty year term policies, as well as several companies offer plans in between. Term insurance provides the highest coverage with the lowest premiums.
Term insurance may not be for everyone, such as older individuals because the premiums do go up with age. Term life insurance is however the ideal type of coverage for young families. See your insurance agent for more information on your current coverage and what is available to suit you.
