Most people have some form of life insurance, whether it be through their job or a personal policy. But what is term life insurance, and why do you need it?
Term life insurance is a type of life insurance that provides coverage for a specific period of time, usually 10, 20, or 30 years. If you die during that time period, your beneficiaries will receive a death benefit. If you don’t die during that time period, the policy expires and you (or your beneficiaries) don’t receive anything.
So why would you need term life insurance? There are a few reasons.
1. You have young children. If you have young children, you need life insurance to make sure they’re taken care of financially if you die. No one knows when their time will come, and it’s important to make sure your children are taken care of if something happens to you.
2. You have a mortgage. If you have a mortgage, you need life insurance to make sure it’s paid off if you die. Otherwise, your family will be stuck with the bill.
3. You have other debts. If you have other debts, such as credit card debt or a car loan, you need life insurance to make sure they’re paid off if you die. Otherwise, your family will be stuck with the bill.
4. You want to leave a financial legacy. If you want to leave a financial legacy for your family, you need life insurance. Otherwise, your family will have to use your assets to pay for your final expenses, which could leave them in a difficult financial situation.
5. You have a special needs child. If you have a child with special needs, you need life insurance to make sure they’re taken care of financially if you die. Without life insurance, your family may not be able to afford the care your child needs.
No one knows when their time will come, so it’s important to have life insurance in case something happens to you. Term life insurance is an affordable way to make sure your family is taken care of financially if you die.
