One of the most important things you can do for your family is to protect their finances with the help of life insurance. Unfortunately, according to recent studies, more than 50 million Americans don’t have life insurance coverage, and many of those with life insurance coverage don’t have adequate coverage.
This is problematic, since life insurance is one of the best ways to protect your family from financial ruin in the event that you should pass on prematurely. In order to bring attention to the fact that families don’t have enough life insurance, Jeff Rose from Good Financial Cents is spearheading a Life Insurance Movement. I think it’s a great idea, since life insurance needs to be addressed.
Life Insurance Doesn’t Have to Be Costly: Term Life Insurance
One of the reasons that many families don’t purchase life insurance is that they are worried about the cost. One of the myths about life insurance is that it costs a lot. Life insurance doesn’t have to cost that much, though. It’s quite possible for you to get a reasonable amount of insurance for a low cost. The answer is term life insurance.
Term life insurance covers you only for a specified term. You can choose terms of between five and 40 years. The downside is that, with most policies, once the term ends and your life insurance runs out, you’ve lost all the premiums you have paid. However, even so, there are benefits to term life insurance. The biggest benefit is that term life insurance is rather inexpensive.
A term life insurance policy is fairly inexpensive. You can get a large amount of coverage for a relatively small amount. Term life insurance is popular for families starting out because it’s possible for a young breadwinner to insure his or her life for 20 or 30 years at a small cost. Term life insurance is known for its affordability. It’s usually possible to get a policy that will provide a family with enough money for the kids to grow up in a financial stable environment for a relatively small cost. Most families can afford it.
Additionally, many term life policies come with a renewal option. You can renew your policy, at the end of the term, for a similar (or slightly higher) premium. Getting life insurance at a younger age can mean that you have a better chance of coverage later, when you are older. Plus, you pay less when you have been insurance, without gaps, for a long period of time. Term life insurance can ensure that you remain eligible for life insurance later in life, without breaking the bank.
Peace of Mind
While there are many things to worry about, when you have term life insurance, you don’t have to stress about how your family will survive financially without you. You don’t have to worry about breaking the bank to pay for coverage, and you can feel good knowing that, if you die, your family will be financially taken care of. Term life insurance is a great choice for a young family, and you really should consider it if you care about your family’s financial future.
Tom Drake writes for Financial Highway and MapleMoney. Whenever he’s not working on his online endeavors, he’s either doing his “real job” as a financial analyst or spending time with his two boys.