If you were to pass away unexpectedly, what would your family’s financial situation be? Would the mortgage or rent be covered? What about car payments, school tuition, utilities and food? Could your family be comfortable despite the loss of your income?
Term life insurance is a type of financial coverage anyone can purchase to protect their loved ones from financial hardship in the event of accidental death. It covers the financial responsibilities of the deceased, and helps the beneficiaries keep their lives on track.
Depending on the specific plan, term life insurance can cover different expenses, and for different types of death, so research is always required, but typically there are three major benefits to term life insurance, regardless of age, income, or even location:
1/ Term life insurance covers funeral – and medical - costs
When a death occurs, the last thing any family member wants to worry about is how to pay for the funeral, but these costs still happen. With term life insurance, funeral costs are covered so family members can focus on moving forward and focusing on remembering their loved one. But funeral costs can often be dwarfed compared to medical expenses, especially if the deceased was hospitalized for a long time before passing away. In some cases, medical costs can top a million dollars, but with term life insurance, these costs are also covered.
2/ Term life insurance helps pay for long-term goals
More than just paying for medical and funeral costs, term life insurance has a longer-term perspective. What if the deceased was, prior to his or her death, putting away money for a child’s university education? What will happen to that child’s future if there’s no money? With term life insurance, this problem is avoided.
3/ You can choose how much you want
Term life insurance is given that name because it is valid for a certain period of time- a term. This type of insurance is available to anyone, and you can actually choose how long you want the insurance to last- whether it’s 10, 15, 20 or even 30 years. The length of the term is usually meant to provide a coverage for family members until their expenses become more reasonable, or until they have enough money without insurance. For example, someone with teenage children who will be entering university in a few years may opt for a shorter term, because their children will probably need money for tuition costs only for a few years. The cost of term life insurance does vary based on your age, gender, and often, whether you are a smoker or not, and it can usually be renewed up to the age of 99 years old.
Insurance can seem confusing for many people, but research and education is the key to making it all make sense. Visit SeniorSurance.com for more information on term life insurance, and for a free quote.