Why A Young Family Should Consider Life Insurance

One of life’s biggest milestones is becoming a parent. Now a small life is in your hands and you want to protect it. But what if the unthinkable happens and you can no longer be there? Parenthood is also a major reason for buying life insurance; so you can continue financial support and ease some of the hardships of spouse or your child losing a parent.

Many young families are finding that term life insurance best fits their needs at an affordable price. It provides flexibility to a growing, changing family. You don’t need to be tied forever to a product that may not remain relevant to your situation. And term life insurance is valuable for many purposes:

• To cover remaining mortgage debt.
• To provide for college.
• To provide continuing income to the remaining spouse and children.
• To pay for medical or funeral expenses.

First of all, what is “term” life insurance? It is insurance coverage purchased for a set amount, of time, or term. Term life insurance can be purchased for different periods of time, it is commonly purchased from as little as 5 years on up to 30 years. During the term, premiums and coverage remain constant regardless of the economy or changes in your life. And, of course, term life insurance is meant to provide death benefits in the case of the insured’s passing.

It's a good idea to consider term life insurance for both parents and not just one or the other. The purchase of term life insurance provides benefits to spouses as well as children. It is easy to think that since a non-working spouse doesn’t have income that there is no need for monetary coverage in the event of his or her death. Nothing could be further from the truth. Remember that the non-working spouse performs tasks and services, such as caring for small children, which may have to be done by a paid service if the remaining spouse cannot stop working.

Something else to learn about and understand is Accelerated Death Benefits. This is a benefit option that starts paying out before the insured’s death in the event of a terminal illness diagnosis. The benefit can come with different payout options, so find out which option you have. It may be a single lump sum payment or it can be paid out in monthly installments before your death to defray costs of medical care or nursing home expenses due to a terminal illness. Upon your passing, a payout will still be made to your beneficiaries.

Annually you should take stock and determine if your life insurance needs have changed, even due to less life-altering reasons than marriage or parenthood. Maybe you just did some calculations and discovered that the policy you have from your employer won’t be enough. Term life insurance can fill in that gap. With the economy the way it has been, you may discover that your old policies no longer suffice to cover increases in prices and costs.

Life insurance is a vital part of a family’s safety net. It is every bit as important as food and shelter to keep survivors from financial burden. And the earlier you apply for coverage, the less expensive it will be. Your peace of mind will be worth it.

If you have any questions, are looking to get started on life insurance and need a quote, visit getnonsmokerrates.com or give us a call at 800-301-8113.