Term life insurance stands as not only being the original form of life insurance but also the cheapest and the most flexible, which are just two of the many reasons as to why it is such a popular form of insurance for young families.
It is essential that young families get term life insurance quotes. Think about how your family would cope if something were to happen to you or your spouse; how would they be able to cope financially? Mortgages, education fees, bills, debts and living expenses are just a few areas of expenses that would still need to be taken care of by your family if you were to suddenly pass away, so would your family be able to cope with these on there own? I already know the answer to this question, no.
Instead of taking out instant no medical exam term life insurance for the remaining years of your life, a term policy entitles you to take out insurance for a specific amount of time, so if you have payments left on your mortgage that stretch a ten year period you are able to take out a term policy that lasts either ten or twenty years, which means if anything were to happen to you or your spouse during this time your family would be paid a death benefit that would cover the payments for the remaining years of your mortgage.
Let’s look at the death benefit of your term life insurance for a moment. A death benefit is the only aspect that you are paying into when it comes to a term policy. You need to ensure that you take out a term policy where, if a claim was made, the death benefit payout would equal out to around six or eight times your annual earnings but on top of this you need to take into account things such as what are your other income sources? The overall size of your family, whether your spouse works and if they do what their income is and what monthly payments you have to consider such as family car payments and mortgage or rent payments. The reason all of these things need to be taken into account comes down to the fact that if anything were to happen to you or your partner, there needs to be enough money for your family to continue paying expenses and living in the way that they would if you were still around.
If you have taken out term life insurance before your children where born then it is a good idea to update your policy so that your children are included in the list of beneficiaries, which will help to secure your financial security.
Term life insurance is the perfect solution to ensure that your family is taken care of financially. So if you currently have a policy make sure you review it to ensure you are getting the best deal for your money. If you however don’t currently have a policy then now is the time to change this.