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A term life insurance policy can allow you to provide the
financial security for your family upon your death. It can
help your
family meet the financial needs previously covered by your
income. One approach to determine how much life insurance one
should carry is to analyze the various needs of the family
in the event of the death of a wage earner. Life insurance
satisfies a number of these needs by providing a fund that
can be used to:
- Pay off debts such as medical
bills and funeral expenses;
- Meet estate taxes and other expenses in settling an estate;
- Provide life income for the spouse;
- Pay off a mortgage to enable the
family to have the choice of staying in the current home;
- Pay for the children’s education
to safeguard your child's future;
- Provide funds for retirement for
the remaining spouse;
- Provide an income for the policyholder’s spouse to
give the family time to readjust to a new standard of living;
- Provide funds to keep your business in the family;
- Draw interest to provide funds for some special
purpose; or
- Provide a monthly income until the children
are grown and out of school.
Term life insurance often provides the most coverage
for your premium dollar for set periods of time. Whether you
want to supplement your existing coverage or simply purchase
insurance to meet a specific need most term life insurance
policies have the flexibility to meet your needs.
Policies usually offers protection for a specific length
of time and premiums that are guaranteed to be the same
for
an
initial
period. When the initial period of 20 or 30 years are up,
it is followed by annually increasing premiums if you decide
to continue the policy.
Reviewing your Term Life Insurance Coverage
It is good idea to review your term insurance
coverage with a licensed
financial professional periodically to make
sure
that your family has the proper protection that you want
to leave them. When you
bought your term life insurance policy, your situation
may have
been
significantly
different
from
what
it is now.
Below is a list of events that are reasons to review your
term life insurance coverage:
- Moved to a new home;
- Married, divorced or been widowed;
- Had a child;
- Changed jobs;
- Started a business;
- Began caring for an elderly relative
- Took out a large home equity, auto or other type of
loan
- Started a retirement fund ;
- Started a college fund;
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Life Quote – View a quote
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