term life insurance

Is Term Life Insurance Worth the Cost?

November 2, 2021

November 2, 2021: You work hard to pay your monthly bills and provide a comfortable life for yourself or your loved ones. Budgets do not stretch as far these days, making many people hesitant to pay for additional benefits. Although this reluctance is understandable, all adults without life insurance should consider enrolling in a policy.

Term life insurance is a good option for those who want lower premiums and only need coverage for a set period, like the life of a mortgage or student loan. Unlike lifetime policies, term policies expire after a set period, typically 10 to 30 years. The policyholder selects their term and coverage amount based on several factors, like the number and age of their children and the types of debts they must pay. 

Is Term Life Worth the Money?

Depending on the age and health of the covered individual and their coverage amount, monthly term life insurance premiums range from less than $20. That type of flexibility means you should be able to find a plan that works within your budget. However, many potential term life buyers question whether that expense is worth it. Term life insurance is worth the cost if any of the following situations apply to you.

You Have Minor Children

Daycare, sports, summer camps, orthodontics- raising children comes with many expenses that may be hard for your loved ones to manage if you die unexpectedly. A term life policy of 10 to 20 years covers those expenses until they reach adulthood or finish college. Your premium payments would add up to far less than the death benefit, making term life a wise investment.

You Carry Debt

If you currently owe money on a mortgage, car loan, student loans, or credit cards, your estate is financially responsible for them if you die. Furthermore, any debts you cosign become the sole responsibility of the other party. A term life insurance policy can pay those debts and allow you to leave a financial cushion for your loved ones.

You Have Little Savings

It is always good to put some money into savings each month, but immediate financial needs make building up a savings account difficult. Even if you manage to put some money in an emergency or retirement fund, will it be enough to cover your final expenses if you pass away? The cost of these life insurance policies is relatively low compared to the benefit your loved ones receive. 

In conclusion, term life insurance is worth the cost for most people. If you pass away during the policy term, your relatively low monthly premium covers significant expenses like mortgages and medical bills. It is a small investment that gives you and your family peace of mind.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. 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 Society, 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.

Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.

Find out how one policy can make a powerful impact.