Why You Need Term Life Insurance

By Compuquotes Team on September 11th, 2008

If you have a spouse or a family, term life insurance deserves some serious consideration. You will definitely want your family to be protected and taken care of in the case that you should pass away, especially if you are the breadwinner of the household. Although term life insurance builds no cash value over the period of time you pay the premium, it can provide significant coverage for your loved ones in the event of your death. The funds received from the death benefit of your term life insurance plan can help cover the costs of your funeral, cover leftover medical bills, and help provide a financial cushion during your family's time of loss.

Term life insurance is, in fact, the simplest form of life insurance there is. It was designed to provide temporary and affordable life insurance protection for those families or individuals on a limited budget. This type of insurance is quite affordable with the typical cost for a healthy 30-year-old nonsmoking male is about $2,500 per year for about $50,000 in death benefits. Of course, as your age increases, your premium will also increase, but only after the term expires. With term life insurance, you will pay the set premium you originally agreed upon for the lifetime of the term.

Many families who are attempting to pay off their mortgages and other debt will invest in term life insurance policies as additional back up should anything happen to one spouse during this time. With today's economy, most households are barely able to afford daily expenses on two incomes, so life insurance protection is essential should one of the incomes be lost due to death. Another reason many people invest in term life insurance is to make sure that their spouse and children are taken care of. Many parents opt for term life insurance for the child-raising years and let the term expire once the kids are off to college.

Term life insurance, although extremely beneficial should you pass away and leave your family without your income, is not intended as a long-term investment since it does not accumulate any cash value. The primary use of term life insurance is to cover financial responsibilities of the policyholder in the event of his or her death. The money issued by the insurance policy can cover funeral costs, take care of any outstanding bills, or even supplement the family's income during their time of adjustment.

If you are a healthy individual without any current form of life insurance, you should definitely think about purchasing a term life insurance policy. This will help give you the peace of mind that your family and loved ones will be taken care of should you pass away and leave them without your income. Although the loss of a family member can be devastating, why add the stress of additional financial burdens such as your extended debt, funeral expenses, and loss of income on top of it? With term life insurance, you can rest assured that your family will receive the benefits if you die within the lifetime of your policy.

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