Term Life Insurance Articles
What Needs To Be Covered When Buying Term Life Insurance For Young Families
2010-04-06
Term life insurance is a policy taken out for a predetermined number of years, typically 20 to 30 years. This is the best life insurance route for young families and we will look at what should be covered in these policies. But first we must ask why cash value policies are seen by many as the more attractive alternative.
Young families are often advised to get cash value policies rather than term life insurance policies. The reason cash value insurance is so popular, about 70% of the life insurance market, is because people are told that it is a great long-term investment vehicle. And term life policies are strictly a consumer product, not an asset being built up. So for instance, you might purchase a policy for a 20-year term, after which the policy would expire and you would have no asset to show for your 20 years worth of premiums. Whereas cash value claims continue to grow beyond some arbitrary term limit.
Term life insurance is, most importantly for a young family, the most affordable kind of life insurance available. While the policies do expire, they cost far less in premiums than other kinds of life insurance. In shopping for a term life insurance quote, young families should ask themselves what they will need if one parent dies and then a single parent must support the family. If you want your children to go to college, ensure that your life insurance policy is good through the appropriate ages of the children. One important thing to make sure is included in the policy is insurance against terminal diseases, which make it impossible for one parent to provide for the family. The bottom line with a young family is that you should probably have a term life insurance quote worth $500,000 to $1,000,000 to satisfy all these needs. A million dollar policy will probably cost around $60 per month and a $500,000 policy around $25 to $30. The monthly premium goes up as the duration of the policy goes up. So a 30 year policy would cost more than a 20 year policy. It is wise to get a policy that lasts long enough for the children to grow up into adulthood because it can be very hard or even impossible to get another life insurance policy when you are much older.
While term life insurance does not give any additional benefit at the end of a long, healthy life, they do give you peace of mind that your family will be able to do the things you planned for them regardless of an early death or an unfortunate illness. Term life is a win-win for whatever happens.
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Term life insurance is a policy taken out for a predetermined number of years, typically 20 to 30 years. This is the best life insurance route for young families and we will look at what should be covered in these policies. But first we must ask why cash value policies are seen by many as the more attractive alternative.
Young families are often advised to get cash value policies rather than term life insurance policies. The reason cash value insurance is so popular, about 70% of the life insurance market, is because people are told that it is a great long-term investment vehicle. And term life policies are strictly a consumer product, not an asset being built up. So for instance, you might purchase a policy for a 20-year term, after which the policy would expire and you would have no asset to show for your 20 years worth of premiums. Whereas cash value claims continue to grow beyond some arbitrary term limit.
Term life insurance is, most importantly for a young family, the most affordable kind of life insurance available. While the policies do expire, they cost far less in premiums than other kinds of life insurance. In shopping for a term life insurance quote, young families should ask themselves what they will need if one parent dies and then a single parent must support the family. If you want your children to go to college, ensure that your life insurance policy is good through the appropriate ages of the children. One important thing to make sure is included in the policy is insurance against terminal diseases, which make it impossible for one parent to provide for the family. The bottom line with a young family is that you should probably have a term life insurance quote worth $500,000 to $1,000,000 to satisfy all these needs. A million dollar policy will probably cost around $60 per month and a $500,000 policy around $25 to $30. The monthly premium goes up as the duration of the policy goes up. So a 30 year policy would cost more than a 20 year policy. It is wise to get a policy that lasts long enough for the children to grow up into adulthood because it can be very hard or even impossible to get another life insurance policy when you are much older.
While term life insurance does not give any additional benefit at the end of a long, healthy life, they do give you peace of mind that your family will be able to do the things you planned for them regardless of an early death or an unfortunate illness. Term life is a win-win for whatever happens.
