Term life insurance is a simple and flexible form of life insurance that provides the perfect protection for many life situations. As term life insurance plans provide coverage for a set period of time such as 10, 15, 20 or 30 years, they are great solution for affordable coverage with a guaranteed fixed premium during that term. Let’s look at 3 life scenarios where term life insurance is a must:
1. Planning for your children’s college costs
With average four year college tuition expenses ranging anywhere between $40,000 and $120,000 it’s easy to see why it’s recommended that you start saving for your children’s education costs as soon as they are born! Whether you’re the best financial planner or tend to leave things a little later than you should, term life insurance can play an important role in helping you give your children the college education they need. How can term life insurance help? Let’s say you’re actively saving for your child or children to go to college, what would happen if you were to pass away unexpectedly with only 20, 40, or even 60 percent of the college fund saved? Where would the additional cash come from? Term life insurance plans can be used to provide a lump sum to help pay for college tuition should you pass away before your kids reach college age.
2. Newlyweds with debt
When you’re just starting your life with your new partner, the last thing you want to do is worry about leaving them with debts. It’s not unusual for newlywed couples to have debt; whether it’s individual debts accrued before the marriage or shared debt such as a mortgage. Planning ahead to cover the debts you have between you ensures that should one of you pass away early the other will be protected from financial issues. Term life insurance plans are great for providing a high amount of coverage for a set period of time, this means that you can take out the coverage you need for these expenses for the expected life of the debt. Put simply, you only pay for the coverage you need for the time you need it. This approach is the most affordable way to get life insurance coverage.
3. Starting A Family
Starting a family brings with it a whole new level of financial responsibility. Looking after young children, and not so young children, can be very expensive. Adding up costs from providing for basic needs like childcare, food, and clothing can quickly add up. If you’re the main financial provider it’s especially important to think about how your young family would cope financially without you around. Could they afford to maintain their existing lifestyle? Would they be able to afford the mortgage? If your family would struggle financially without you around then term life insurance is a necessity. A term life policy can leave enough money to cover your debts and replace your income while your family get back on their feet financially.
Whatever scenario your are in, life insurance will give you peace of mind.