We are constantly thinking about the future – maybe what we’re going to eat for dinner, where we go on weekends, and where we want to go on our next vacation.
But what about the more distant future?
It may sound daunting, but it’s never too early to predict the inevitable and look into life insurance plans. Life insurance will protect your family while you’re away, covering some of your biggest financial commitments, such as your mortgage and personal loans. However, if you are looking to provide flexible and affordable financial security for yourself and your family, you may want to consider term life insurance.
There are many useful online resources where you can learn about the different types of life insurance plans, such as theinsurancebulletin.com for example. But, in this article, we’ll specifically explain what term life insurance is and help you decide if it’s the right plan for you.
What is term life insurance?
Term life insurance does exactly what it says on the tin. This is a plan between you and an insurance company that covers you for a specific length of time – usually a period of 10 to 30 years. This means that if you die within that specific time, the insurer will pay the beneficiaries you named on your policy. You decide the length of your insurance.
Term life insurance is most popular among those with growing families, as your responsibilities and circumstances can change dramatically as your children grow older. The length of insurance may depend on your financial commitments, such as the length of your mortgage or the number of years your children are likely to depend on you financially.
Do you need term life insurance?
So, now that you know what term life insurance is, here are five reasons why you might need it:
1. To cover your children through education
Term life insurance is most often sought after by those with financially dependent children. If you have young children and want to make sure they’ll be taken care of and their education paid for – in the unfortunate event that you’re no longer around – term life insurance might be the right plan for you. .
For example, if your kids are in school, planning to go to college, and will have completed their full education within the next eight years, you might want to purchase a ten-year term life insurance plan. This will ensure that all school fees are paid if you can no longer support your family.
2. You have a mortgage
If you have a mortgage that lasts about 30 years, term life insurance can cover the monthly payments you pay, so your family doesn’t have to take on the financial responsibility when you’re gone. It also ensures that your loved one’s home is protected and won’t have to be sold to cover mortgage costs.
You may be able to purchase term life insurance if you just bought a home and took out a mortgage, to cover the entire payment period. Of course, if your financial obligations are likely to extend over a period of more than 30 years, it may be worth considering other permanent life insurance, such as universal life insurance.
3. You have a high risk job
If you have a high-risk job that you don’t intend to do for your entire life, term life insurance might be a good idea. A high risk occupation could include:
- Airline pilots
- Construction workers
- Logging workers
- Fishermen and related professions
- Truck’s driver
In any of these roles, there is a risk that you could be involved in an accident and be injured. fatal injury. Term life insurance will ensure that your family is covered for the length of time you practice this profession.
Term life insurance can be an affordable and flexible option for you if you want to protect your loved ones when you have significant financial obligations. The beauty of a term life insurance plan is that once the policy ends, it will expire. This means that you can consider your options based on the new circumstances you find yourself in and find a new plan that works best for you.