Most of us are aware that life insurance is a critical investment, but saving for just about anything can be an intimidating concept for many. And, if you’re young and healthy, buying life insurance might not even be top-of-mind (even though it’s a smart decision because life insurance is more affordable at this time). Even though we know we should purchase life insurance, many of us put it off for these and other reasons; however, the longer you wait, the greater the chance that something might happen to you while you aren’t covered. In this article, we’ll explain why buying life insurance is so important, and will outline five of the most important reasons that a term life insurance policy is the ideal choice for many.
It’s no wonder that term life insurance is the most popular type of life insurance. Compared to whole life insurance, term life insurance:
- Is more affordable
- Has simpler terms
- Pays a lump sum of money in the event of your death (death benefit)
- Allows you to name multiple beneficiaries (which can be family members, charitable organizations, a trust fund etc.)
- Has a fixed term, allowing you to pay for coverage only when you need it (e.g. while you have expenses like a mortgage or need to financially support others).
These are the main advantages to choosing a term life insurance policy over other types of life insurance—below, we have listed five ways you can leverage a term life insurance policy to improve your finances and support those who are financially dependent upon you.
Life Insurance to Pay Off a Mortgage
You can choose to purchase a term life insurance policy for the amount of your mortgage. This will allow your loved ones to use this money to pay off the mortgage so that they can remain in your home should you pass away during the term of the policy.
Pay off Credit Cards, Loans and Other Outstanding Debt
Your outstanding debt does not go away once you pass away. This could leave a considerable burden on your loved ones. Investing in a term life insurance plan can help satisfy these debts, taking the pressure off of your loved ones. These life insurance plans are also often used to ensure that car loans are satisfied, and are also used to pay off loans or liens. The best type of term life insurance to pay off a loan or lien is one with a decreasing payout—this allows you to pay less for coverage as the amount of the loan decreases.
Life Insurance to Cover Funeral Expenses
Funeral expenses have been rising steadily for years, making it of utmost importance to ensure you have money set aside to pay for your final expenses. Investing in a term life insurance policy will ease the burden on your loved ones during this difficult time.
Finance College Tuition
According to Experian, the total amount of outstanding student loan debt reached an all-time high of $1.41 trillion in 2019. With a term life insurance policy, you can help pay for your child’s college tuition, ensuring they can get their degree without taking on the financial burden of a student loan in the event of your death.
Provide Financial Security for Your Family
A term life insurance policy can help pay for bills and other daily living expenses should you pass away unexpectedly. This can help ease both general stress and the financial burden on your loved ones while they find other sources of income to pay for their daily living expenses.
These are just some of the reason that investing in a term life insurance plan is a wise decision. At Schuler Insurance, we specialize in providing affordable term life insurance policies to Texas residents. We offer fixed duration term life insurance plans with 10, 15, 20 or 30-year terms, with premiums that are generally guaranteed.
Our term life insurance policies are also convertible, meaning that they can be converted into a permanent life insurance policy. Converting your term life insurance policy into a permanent life insurance plan can help you adjust should your needs change once your coverage expires.
You also have the option to add a child rider to your term life insurance policy. Child riders help cover the burial expenses should you suffer the loss of a child.
Have more questions about our term life insurance plans? Wondering about term life insurance cost? Use our calculator to get a free, instant term life insurance quote, or contact us today and one of our knowledgeable experts will help answer any other questions you may have.