Why choose Term Life Insurance?

Term life insurance is insurance that lasts for only a specified term, or period of time. This term can be short or long depending on your needs and the variety of policies available from the company from which you are buying a policy. There are many reasons that people should consider term life insurance as the perfect alternative, so let us explore some of those reasons below.

New Debt

If you are buying a car, a boat, or any other expensive investment, then you are adding to your monthly financial burden and that of your family. When you add these burdens, the emergency funds that you have in place for your family might not be enough to cover them through the new debt should something happen to you. This means that you should consider investing in a short term life insurance policy of only a couple of years. This kind of policy will help your family maintain their lifestyle and pay off the new debt should something happen to you before you have completely taken care of it. Consider this when buying anything from a horse to a jet ski, and you will have your family covered in case of an emergency.

This kind of reasoning for buying term life insurance is just as common sensical as taking an umbrella when you step out on a cloudy day. With luck, you will never need to use it, but it will always be there if the worst should happen and the storm breaks unexpectedly.

Buying a house falls under the category of new debt as well, but as it is unlikely that you will be paying of the house within, say, five years, you would ideally be considering a longer term policy for this kind of investment. A thirty year policy will help you protect your family, hopefully until the house is paid off and the debt is gone. This can also be taken care of with term life insurance.

New Family Members

Hopefully the burden of a child was one that you expected and welcomed, and now that that child (or those children) is here, you will want to take care of them as best you can. Child rearing is expensive, and child care can put a single parent far behind on the monthly bills. If you have any special new additions to your family, perhaps it would be ideal to consider a life insurance policy of twenty to twenty five years to protect your family until the children are raised and gone (hopefully!) You will have the assurance that your family will be financially taken care of until the kids are grown and out of the house and your spouse only has him or herself to take care of.

This kind of policy is the kind that you will always hope never to use, but would never want to be without. There is nothing worse than losing a parent, unless it is to lose both parents because the survivor could not handle the burden alone. Term life insurance could protect them once you are gone and are no longer able to do so yourself.