Life insurance gets a bad reputation. More than any kind of insurance coverage, life insurance has the stigma that you are sold what you don’t need. Now, while some agents may reinforce that stereotype, the truth is life insurance can be a vital asset for the right people. This post will cover the benefits of term life insurance.
How Do I Know If I Need Life Insurance?
If one of these three reasons sounds like you-you should consider term life insurance.
- If you have children – life insurance is a no-brainer. Kids are expensive! Raising children on one person’s salary can be almost impossible. Life insurance is a way to take care of your family when you are physically no longer around to do so. Even if one spouse stays home with the kids, it is still wise to consider life insurance. Why? Think about why your partner is home with the children in the first place. A large reason for many parents often involves the high cost of childcare. Without your partner, you will be left shouldering full-time childcare costs that can easily exceed a full-time salary.
- If you need to replace your income – do you have a mortgage with your partner? Life insurance for couples without children is important when you share a mortgage so your spouse can afford to keep making the house payments if they decide to stay in the home after your passing.
- If you are young – now, in saying that you have to have met one of the first two criteria already. Buying term life insurance is ridiculously cheap for people under 40 (which is generally when you have a mortgage and children to also worry about.)
Where Can I Purchase Life Insurance?
The advantage to buying when you’re young you get to keep that premium rate for the term of the policy. Your 30-year term life policy will be at a fixed rate for all 30 years. The rate is set by the age you were at the day you opened it. For example, if you are 25 when you started the policy the rate will be the same as a 25-year-old when you are 50 (when policy premiums typically increase substantially.)
With so many life insurance providers available – finding a reputable company offering the right policy at the right price can be difficult. One option is to find a local broker who can walk you through the process. An important note: your local broker is obligated by law to give you the same price on term life insurance as the insurance company so there is no downside to this approach. Here are a couple of other new fintech startups that have recently come online in the last few years where you can compare quotes.
WellKeptWallet also has a great selection of the best term life insurance companies.
Life insurance provides you and your loved one's peace of mind, no matter what the future holds.
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