Term Life Insurance
What does term life insurance mean? What and who does it cover? What makes it a vital part of your financial plan? These are important questions to answer to ensure your loved ones are looked after once you are no longer in their lives.
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What Is Term Life Insurance?
Term life insurance is a type of life insurance that provides coverage for a specific period. That’s why it’s called “term” life insurance. Coverage can last for 10, 20, or more years, depending on the policy. During this period, a lump-sum or death benefit will be given to your beneficiaries should the worst happen.
Beneficiaries could be your family or loved ones like your spouse and children. In some cases, it can be an organization you support. Term life is a contract in which your beneficiary receives the payout if you die before it expires.
Benefits of Term Life - How Can It Improve Your Loved Ones' Quality of Life
There are many ways that a term life insurance policy can improve your quality of life or that of loved ones. It can cover whatever your family needs or wants, both in the short-term and long-term.
Here are some of the ways your beneficiaries can benefit from term life insurance:
On your death, the funeral and burial expenses will fall to your family members. It’s hard enough grieving for a loved one, but looking for a way to pay for bills will make things even harder. Term life insurance helps ensure your family won’t have to shoulder this extra stress during the grieving process.
Running a household can cost a lot. If you die, the responsibility of providing for the family may fall to your partner or spouse, or even your parents. With term life insurance, you have an emergency cushion that could lift the financial burdens a little bit for those you care about.
If you have children or other dependents, you have additional expenses to consider when you are gone. You don’t want your partner to shoulder these financial responsibilities alone, and this makes term life a great option. It’s not cheap to raise a kid, but a life insurance policy can help with that.
Before your untimely passing, you may have obligations that might end up becoming the responsibility of the family you leave behind. Term life insurance can help pay off those debts, helping remove a significant weight for your loved ones.
Life insurance policies sometimes include an accelerated death benefit rider, which can aid with your medical expenses if you contract a terminal illness. It can pay off some of your long-term care expenses but note that this option will reduce the overall death benefit provided when you pass away.
Paying your mortgage is another financial burden you don’t want to leave to your loved ones. Fortunately, a term life insurance can help take care of this. This way, your spouse is better able to make decisions towards the good of the family after your death.
Protect You and Your Family
Besides those benefits mentioned above, purchasing a term life insurance is crucial as it can help you provide a secure future for your family. You can give them a legacy that ensures they live a quality and happy life even when you are gone.