Even though the majority of the customer base for term life insurance is made up of an older population; having a family makes it register with a much younger generation that spending a few extra dollars a month is worth it to cover a spouse and/or children in unforeseen circumstances.
As a young family you may just have started looking into life insurance without having any previous policies or experience of the industry. You may start to feel overwhelmed by the amount of choice that is open to you when it comes to the policies that are available. If this sounds familiar then don’t panic as the only policy that you need to be interested in is known as term life insurance.
Being a young family can often means that money is a bit tight. You probably have a lot of expenditure every month as it is, so having to add large life insurance monthly premiums to this isn’t the best situation to be in. Luckily for you a term policy is the cheapest form of life insurance available. The way that it works is you take out the policy for certain amount of time; between one and thirty years and then your policy ends. This makes the policy a lot cheaper as the insurance agency is aware they may never have to make a payout to you so charging high monthly premiums can’t be justified, plus you are young so that will bring your policy premium down too.
When you are moving through stages of your life it is common for your needs to change. Your needs and your life in general certainly changes when you take on a family of your own. During this change you will develop the need to take out life insurance but as you are relatively young and in decent health you may not want to commit to a term life insurance policy just yet. A term policy would allow you to take out cover for the time in your life when you need protection the most. For example, if you and your family have just moved into a new home and have taken out a mortgage, a mortgage that is paid for primarily from your income; how would you pay this mortgage if you were to pass away? You wouldn’t have the income that you have now and you would end up behind with not only mortgage payments but other general bills, meaning your family would be at risk of losing the property.
With term life insurance you could take a policy out that runs for the same length of your mortgage. So if anything were to happen to you, your family would be able to claim a death benefit that covers aspects such as your mortgage and general bills and expenses. Other aspects that would be provided to your family thanks to a death benefit payment are the following:
* Money to take care of all educational opportunities for your children
* A good steady flow of income coming into the family home
* Ensuring there is money to cover aspects such as holidays and recreational activities so your family can spend time together
* Means they can start saving to make sure your children have the best start possible in life
No medical exam term life insurance should be an essential part of any young families’ financial plans, no matter how low the chance of you needing to use the policy may be. At least with the policy if the worst were to happen the financial future of your family would be taken care of, meaning it would be one less thing for them to worry about.