5 Reasons You Should Purchase Term Life Insurance
August 30, 2021
AUGUST 30, 2021: Term life insurance is a great way to ensure financial obligations of a family are met in case of an emergency that takes away the primary bread-winner. With term life insurance, if the insured person dies within the contracted period, the insurance company pays a specified death benefit to the policy holder's named beneficiaries.
There are two big decisions to make when considering term insurance: how long of a term and how much insurance is needed. Settling these issues will allow your insurance to cover expenses for your dependents, including education costs, mortgage payments, living expenses and funeral costs.
Here are five reasons to invest in term life insurance.
1. It's Inexpensive
Many people get sticker shock when shopping for insurance; premiums can be cost-prohibitive. However, term life insurance is much less expensive than whole life. Young people who don't foresee departing this earth early may see life insurance as a waste of money, so the lower price of a term policy makes sense.
2. Provides For Survivors
The most popular reason for purchasing term insurance is to provide financial security for the immediate family left behind. The following are common benefits of term insurance:
- Purchasing a term insurance policy with the birth of each new child and making that child the beneficiary gives the gift of financial security to your heirs in case you are not around to support them.
- A term policy can be earmarked for college tuition in case a tragedy prohibits you from helping your kids go to school.
- Term insurance can provide money to any beneficiary, to provide for their needs in case of your death.
3. Pays Off Debts
No one wants to burden their loved ones with debt in the event of their death. Term life insurance can take care of that in these ways:
- Term policies can be used for paying off cars or recreational vehicles.
- Mortgage payouts with term life policies are an extremely useful benefit.
- A term policy can take care of credit card debt or outstanding loans.
4. Covers Final Expenses
The cost of funerals has been increasing for years. A term policy will enable your grieving family to cover the costs of your final expenses without adding to their financial burden.
5. Creates Peace of Mind
The overall price tag of term insurance may seem like a waste if you're still alive at the end of the term. However, the peace of mind that comes from knowing that your family will be financially taken care of in the event of your death is worth the price tag.
While term insurance may seem like a big investment, it's a relatively small amount of money to ensure your family is protected in case of tragedy. Even a small premium can provide a substantial enough death benefit to cover the necessities for your loved ones.
About 1891 Financial Life
At 1891 Financial Life, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance organization, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.