Term life insurance policy is designed to give the insured with coverage for a defined period of time, typically 20 to 25 years. It is cheaper than a whole life policy and the way to protect the interests of loved ones from any debt burden, school fees and rising living expenses in the event of the insured’s death.
Term Life Insurance Policies to Protect Your Family: One strong reason for taking out term life insurance coverage is to provide protection for a partner or young children. This is more important for the only bread winner of the family, as having no income coming could be financially shattering.
Outstanding Mortgage with a Term Life Insurance Plan: To buy a home is the most expensive purchase most people will ever make and can financially stretch even a two income family. And with a sudden loss of income which could mean that paying the mortgage is no longer a possibility. Term life insurance policies provide a good amount of cash upon death and this can be used to pay off the mortgage.
Lost Income can be replaced by Level Term Life insurance: Even those who don’t have mortgage will need monthly income to survive. It remains necessary to pay for utilities, groceries, credit card debts and other expenses. A term life insurance plan will provide a substantial amount of money which can be invested to yield an income each month.
Term Life Insurance Coverage to clear Unpaid Medical Bills: Not being able to pay off medical bills is the main reason for personal bankruptcy in the U.S. With Term Life Insurance policies can be used to clear the unpaid medical bills and also cover any unwanted funeral expenses.
