Yours is a young family, just starting out. But, you have to be ready for the future. Sometimes, things don’t go as planned. Should something happen to you, your death may leave your family in an unstable position.
That’s where life insurance can come in. In the event of your death, you can use your life insurance as a financial cushion for your family or other assets. Of the various types of life insurance, term life coverage is often a good fit for young families.
What is Term Life Insurance?
Simply put, term life insurance lasts for a term. This means that you enroll in a policy for a specified number of years. During that period, you will pay premiums on the policy to keep it active.
A term policy comes with a set payout that your survivors will receive when they claim the policy. You will usually determine the amount you want for a payout when you enroll in coverage. In limited circumstances, you may be able to add cash value or dividend accumulation.
Your policy can provide support as your loved ones begin to recover after your passing. If you die, your policy’s beneficiaries (whom you will name on the policy) will receive the payout from the claim. They can use this money to make ends meet and sustain their lifestyles even after the loss of your own income. For example, your family might use these benefits to pay for a child's education, a mortgage or outstanding debt.
How Term Coverage Benefits Young Families?
A term life policy will only last for a set number of years. Therefore, it is usually much more affordable than other forms of life insurance. Indeed, enrolling in term life coverage while you’re young and healthy may help you save on policy costs.
Another benefit of term life coverage is that it can serve your needs usually as long as you want. You don't have to keep it indefinitely. This can often help many families as their living situations change over the years. For example, once a child grows up and leaves home, two retired parents may not have need for life insurance. They could decide to drop it because they have enough assets to sustain their lifestyles. Nonetheless, should the parents decide to keep their coverage, they often have a resource to do so. You may decide to keep insurance for your entire life, or drop it after the term.
If you need term life insurance, let Pfenninger, Claxton, & Estelle Insurance Group help. Call us at 800-343-7293 for Muncie life insurance quote.