10 Great Reasons to Buy Term Life Insurance
David LeNeveu
There are a number of great reasons why everyone should have some form of life insurance. Term life insurance is the most straightforward and, generally, the cheapest type of life insurance*. In its simplest form, an individual can apply to insure their life (or possibly someone else’s) for a fixed period of time (the “term”) by paying a monthly or annual premium. After the “term” expires, the life insurance also expires and no more premiums are required. Here are 10 great reasons to buy term life insurance:
1. It’s Inexpensive
Term life insurance can be very inexpensive. A healthy, non smoking, 25 year old female, can get a 10 year, $500,000 policy for as little as $13.75 a month**. A 20 year term policy can be as little as only $19.58 a month. Can you afford not to buy life insurance?
2. The Best Time to Buy Life Insurance is Today
Over time and as people age life insurance premiums increase. Unexpected health problems can also make it difficult to qualify for a low premium or for any form of life insurance. Lock in a low premium at a young age!
3. Mortgage Protection
Term insurance is a great way to secure the family home. Not only can you match the amount of life insurance to the amount you owe on your home but you should be able to closely match the term of your life insurance to the number of years it will take you to pay off your home.
4. Pay off Debt
You’ve already covered your family home; don’t forget to secure all of your other debt as well: credit cards, student loans, car payments, vacation home, line of credit, etc.
5. Replace Your Income
One of the biggest requirements that need to be addressed if someone passes away is their lost income. There are many factors to consider and a number of different ways to determine how much life insurance you need to you replace your income. Term insurance may be the most cost effective solution. Each individual should consult with a life insurance broker to determine their individual needs.
6. Don’t Forget to Insure Your Spouse
Many people think to only insure the breadwinner in the home. How much value does a stay at home spouse provide? Think of the child minding, chores, meal making, and the hundreds of other tasks that your spouse does each day to allow you to go to work and provide for the family. Insuring your spouse will help ease these burdens and still allow you to pursue a career if you so desire.
7. Provide Funds for College
Most parents would agree that if something were to happen to them they would like to be able to pay for their children’s college expenses. A term life insurance policy can ensure that those costs will be covered if you aren’t there to help.
8. Supplement Employer Provided Benefits
Many workplaces now offer their employees a range of benefits; many include a life insurance policy. The provided life insurance policy, however, may not be even close to the amount of protection you or your family needs. Consider talking to a life insurance broker to see if you need to supplement your employer provided policy.
9. Pay for Final Expenses
The death of a loved one is difficult enough without having to worry about funeral costs, final expenses, and possible estate taxes. Have the money in place to help ease the burden of your loved ones.
10. Peace of Mind
Go to bed each night knowing that your family will be completely debt free and protected if something should happen to you.
If you have any questions or concerns or if you would like a free evaluation of your individual insurance needs please don’t hesitate to call or email me.
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* Not everyone will qualify to purchase term life insurance. There may be other forms of life insurance that are cheaper for some individuals. Please consult with a licensed life insurance broker to assess your individual or family needs.
**The quote provided was made Dec.21, 2014, assumes a Diamond Plus Rating, and is based on an annual premium. In no way does the quote guarantee a rate for any individual. Medical and financial underwriting may be required to ascertain an accurate and final price. A term life insurance policy will not remain in force if the premiums are not paid (as set forth by the terms of the policy). A term life insurance policy will not be valid if fraud is committed (as set forth by the terms of the policy).