In life, there are many responsibilities that we are handed as we grow up. When we are young, we live a mostly carefree life, with our parents caring for our every need. But, as we got older, and we move out of our parents house, we become financially independent. We pay bills, get married and own homes. As we build our lives and our families, our financial responsibilities grow with us. Part of that responsibility is to provide house and home for those we love.
It is human nature to want to take care of our loved ones, even after we are gone. Term life insurance is one easy way to make sure that your family is financially secure after you pass. The cost of a loved one passing can weigh down a family both emotionally and financially, but with life insurance, you can help lighten your families load.
Term life insurance can be used for many of your loved ones financial needs after you have passed. Perhaps the three biggest financial uses of term life insurance payouts are paying off debt, paying a mortgage, and funeral costs.
Funeral costs are often the most common uses of a term life insurance payout. Funeral costs have grown over the years and now the average American funeral runs somewhere between $7,000 and $10,000. These costs cover the casket, funeral home costs, and much more. If you havent been saving for this cost over the years, your loved ones may not be able to afford these costs. Term life insurance is an easy way to insure that your funeral costs are covered and that it is one less stress that your loved ones are weighed down by.
A mortgage is one of the biggest financial responsibilities you will ever take on in your life. Should you pass before you have paid off your mortgage, it could leave your loved ones in a significant financial bind. Fortunately, many financial institutions will require that you take out a life insurance policy in the amount of your mortgage when you get it. This will protect your family from financial burden should you pass before the mortgage is paid off.
Finally, term life insurance is an excellent way to insure your debts do not become the obligation of your loved ones after your passing. No matter what the debt(s), or how much you owe, term life insurance can be used to help cover the costs of those financial commitments so that your family isn’t left with the financial burden.
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.