Being a parent is one of the most difficult yet most rewarding jobs on the planet. One of the hardest tasks of being a parent is worrying about the family’s future, especially when it comes to planning finances. Have you ever thought about how your family would cope financially without you around? The answer to this question is why many parents are turning to term life insurance to protect their loved ones. Here’s a closer look at why families choose term life:
It provides financial support when you’re not around
Whether your young family relies on one main income or the joint income of both parents you should consider a term life insurance plan. Term policies can provide a source of income replacement should either one or both parents pass away unexpectedly. Without the main source of financial income your loved ones could quickly run into financial difficulties. A term life insurance plan can leave a cash lump sum that will protect your family from financial problems until they can get back on their feet. Many parents choose a term life plan to cover mortgage payments, day-to-day expenses, college tuition, and much more.
It can cover the financial value of a stay at home parent
When we think about life insurance it’s easy to make the mistake that we should only get coverage for the main financial provider. I mean it makes sense to think that the biggest financial stress would come from losing the household income. However, many households with young children should also think about getting term life insurance coverage for the stay at home parent. If you or your partner provide the main source of childcare for your family you are actually saving a lot of money every year. In fact, in 33 states childcare costs more than college tuition, and an in-house nanny could cost you nearly $30,000 per year. Would your family be able to afford these expenses if the main caregiver was to pass away? If not then you should consider taking out a term life insurance plan to provide the needed funds for childcare expenses.
It’s the most affordable coverage available
Did you know that term life insurance is one of the simplest and most affordable life insurance options available? Many families choose term life insurance because it offers inexpensive coverage that can last for up to 30 years, meaning they can get long-term coverage at a price they can afford. Why is term life insurance cheaper than other plans? Simply because unlike whole life insurance it offers fixed term coverage that only pays out if the policyholder passes away during the coverage term. This type of coverage makes the most sense for people who want a life plan to insure their family for certain expenses that only last for a set period of time, such as mortgages, childcare costs and college tuition fees. If you want to provide for your young family while your children are growing up then term life plans are a great option.