Term Life Insurance 101: What You Need To Know About Term Life Insurance

If you're the breadwinner of the family, your untimely death could be financial ruin for the entire household. The mortgage and college prospects could disappear with the loss of your income. Although planning for the worst-case scenario appears dire, it also provides you and your family with a cushion in tragic times. A term life insurance policy should be part of your basic financial planning. When you save for college, retirement or everyday investing, you need an insurance policy that covers all your assets in the event of your death.

Policies With Purpose

Death is one of the most stressful parts of life, especially when a spouse passes. You want your family to have the comfort to grieve for as long as they need to. Term life insurance allows them to concentrate on family, not on their immediate needs to fill the checking account with income. Without this financial stability, your family faces uncertain times. They may lose the house, vehicles or other assets. Term life insurance doesn't provide a small monthly payment, but actually releases a lump sum to your beneficiaries once you pass. They are free to distribute the money as necessary. It's up to you to decide on an amount that is ample enough to cover desired expenses. If you want the house to be paid off or your children's college to be fully covered, consider term life coverage today.

Term Benefits

The main benefit to term life insurance is low premiums. If you've priced whole or permanent life insurance, you may have been exasperated by the high prices. Some policies may have been more expensive than your monthly mortgage payment. Term life insurance is known for its low premiums, freeing your monthly income to invest in other areas. Stock some funds away in an emergency fund for household repairs or medical bills. Pay off student loans or credit cards. Even save up for that dream vacation.

Life insurance is there as a backup financial guard if you pass away unexpectedly. Although you may never submit a claim, term life is there to guard your family from financial catastrophe. There's no need to have a legal background to decipher the policies either. You simply need to match your liabilities to a coverage that you can afford each month.

Policy Length Choices

Your policy length is your choice, based on personal needs. For example, a family with children younger than 5 often need a 15- or 20-year term life policy. You want to cover the children's expenses until they are adults, along with their college tuition. The policy may even cover the mortgage to reduce stress on the surviving spouse in the event of your death. Even if you select a short policy length, it's always possible to extend it through renewals. Talking to your insurance agent will help you understand your options to cover your unique circumstances. Ideally, you want to cover more years than you believe are necessary to maintain that financial stability and lower monthly payments.

Coverage Considerations

Although it's natural to cover household and children's expenses with term life insurance, it's crucial to think about other items that aren't as obvious. Sit down with your spouse to make a list of important coverage needs. Although your spouse may be a homemaker, their work has a price tag if they pass away. The children will need daycare or a nanny, requiring that monetary amount to be added to the policy. Coverage may be enough to pay off the mortgage, but it also needs to cover all the expensive funeral expenses as well.

Medical bills are another issue that is often overlooked. If a spouse is in an accident, for instance, their hospital bills add up. When they pass away from the accident, those bills are now the spouse's responsibility. You want to protect your family from these financial burdens with the right coverage amount.

Feel confident about your family's future with a strong term life insurance policy by your side. Simply use an online insurance calculator to match your coverage with a monthly rate. You'll be surprised at the affordability of many policies. Purchasing a policy today makes the rates lower over the life of the coverage. Protect your family today.

Compare Term Life Insurance Quotes Online

To ensure you find the best coverage at the lowest rate, it is best to compare multiple quotes from trusted life insurance providers. If you’re ready for your free quote, fill out the LifeRatesFinder.com simple online form now. You can compare rates and ultimately save hundreds on your term life insurance policy.