Happy Hanukkah! In the spirit of the eight days of light, we are sharing eight reasons everyone should invest in term life insurance. Last week, we shared the first four reasons: your parents, your significant other, your children and your peace of mind. Now we will conclude our Hanukkah series with the second four reasons to have term life insurance: affordability, mortgages, funeral costs and retirement.
Affordability— One of the most distinguishing characteristics of term life insurance compared to whole life or universal life insurance is its affordability. Since term life insurance is a pure death benefit, premiums are lower, and you can choose to be covered up to a point at which your savings would be able to protect your beneficiaries. By serving as purely income replacement, term life insurance is an extremely affordable plan for your loved ones financial security.
Mortgage— Buying your first home is one of lifes greatest milestones. It is also most likely one of largest investments you will make. Term life insurance can ensure your family will not lose the investment you worked so hard to earn. A SelectQuote agent can help you find a policy that corresponds to the amount and term of your mortgage, so you can rest easy in knowing youve secured your familys home.
Funeral costs— While financial issues seem almost trivial in the midst of a death, the cost of funeral arrangements are significantly expensive and can jeopardize financial stability of your loved ones. Today, funeral costs can easily run over ten thousand dollars (Federal Trade Commission). Term life insurance offers an affordable option to make sure the burden of funeral costs is covered and does not fall on your family.
Retirement— Retirement is a culmination of your lifes work paying off. You now enter a stage in your life with new found time and freedom to pursue personal passions and spend more of your time with those you care about. With retirement comes a fixed income which provides security but stops income growth. If tragedy were to strike, having term life insurance is an easy way to make sure no money is unnecessarily pulled from your nest egg.
Like any major purchase, you should compare your options when purchasing life insurance. Different policies will have different pros and cons, and will be influenced by different risk factors. By using an independent term life insurance agency, like SelectQuote, you can compare different life insurance companies and policies to find the best policy to fit your budget and lifestyle.