Life is defiantly the most precious gift that any of us have and our lives are highly valued and regarded by our family as well. For many young families the thought of death is one that is far off but sadly for all of us our day will come and this doesn’t necessarily mean when we have grown old.
Death is an uncertain part of our lives and the sad truth is it could happen at any time including now when you are just starting to raise a family, meaning you need to be financially prepared for when it does. Your best chance at doing this is by taking out a life insurance policy; the best one for young families being term life insurance.
The majority of young families will have a mortgage and unpaid debts that they are slowly working their way through, this should be an incentive to take out a life insurance policy but for many people this decision is sealed when children come into the picture. If you are a young family and you have any of these commitments you should provide cover for your family as well as peace of mind with a term life insurance policy as you are able to take the policy out for a certain amount of time. So if you have a 20 year mortgage you should think about taking out a 20 or 30 year term policy so if you were to pass away during this time your family would be able to keep up with the mortgage repayments.
This is exactly what affordable term life insurance is all about, it is ensuring that your family has financial security so they can pay off debts and mortgages and get children through college as well as ensuring that they can live a good quality of life without the added stress of money worries.
There are a number of life insurance agents who can offer you competitive rates when it comes to a term policy but as a young family when you are looking for a term life insurance policy, I recommend that you purchase your cover so that it is equal to about eight to ten times your salary. By doing this is means, if the worst were to happen; your family would have enough money to cover all expenses as well as funeral costs.
The reason why young families should opt for term life insurance as oppose to say, whole life insurance comes down to a few factors, which are as follows:
Length of cover
As a young family I think it’s safe to say that you aren’t in the market for an insurance policy for the long run. With term life insurance you are able to opt for the amount of time you take the policy out for, this can be between one and thirty years, so you can just take the policy out to protect your family during these vital years. With whole insurance however, you are taking the policy out for your entire life.
The fact that you may outlive your term policy makes this policy the cheapest out of them all. However a whole policy will be largely more expensive for the pure fact that at some point this policy will have to pay out to you so your monthly premiums will be a lot higher.
Reason for taking the policy out
As a young family you won’t really be thinking about making plans for when you are no longer around; you will merely want to take out a life insurance policy to protect your family financially while you are setting up and paying your mortgage, whilst you are paying off student debts and whilst you are getting your children through their education. You need a temporary form of protection, which is just what you get with a term policy. A whole policy is something that is taken out more by older people who are planning for when they are no longer around.
Merely just from these three points you can start to see just why term life insurance is the best option open for young families. So if you haven’t taken out the policy as of yet I suggest that you look into it and protect your family now while you are still young.