10 Reasons to Choose Term Life Insurance
Term life insurance is the most popular type of life insurance that people choose when buying a life insurance policy. If you still need a bit more convincing as to benefits from term life insurance, take a look at the below list of reasons to choose a term life insurance policy.
Insure Specific Goals
Term life insurance is well suited for helping you attain goals for your family. Every person has a different set of life goals, but most of them can be protected using one or more strategically purchased term life insurance policies.
Pay Off a Mortgage
By purchasing a term life policy to cover your mortgage, you can rest assured that your survivors can stay in the home even if you should pass away. There are special types of term life insurance that decrease in payout value as the policy matures, matching the decreasing amount of your mortgage.
Provide Financial Independence
Purchasing a term life insurance policy each time a child is born and naming the child or the person who will be their guardian as the owner will allow you to give some financial security to all of your descendants, just in case you are not able to be there to help them yourself.
Make Life More Comfortable for Your Loved Ones
Insurance policies can be used for renovations and home additions, or any other purpose you desire. A modest term life policy can make your surviving loved ones more comfortable by paying for the repairs to an aging home.
Every parent wants their children to be able to get a college degree, and a term life insurance policy can make sure the money is there for them to do so if you are stricken by tragedy.
Pay Off Credit Cards or Other Debt
Your death does not automatically erase your acquired debt, but a term life policy can take the pressure off your loved ones.
Provide Your Family with Money to Move
If you have settled into a place where there are no other relatives or long-time friends, you can purchase a term life policy for the purpose of your moving your family back to familiar territory in the event of your death, rather than leaving them stranded and alone in place where there is no one to offer moral support or companionship.
Pay Off Loans or Liens
Term life policies are often used to make sure that a car or recreational vehicle can be paid off, and they are just as useful for paying off other loans or liens. The best type of policy for this purpose is one with a decreasing payout, so that you pay less for the coverage as the amount of the loan goes down.
Create a Charitable Donation
Term life insurance policies are a good way to benefit your favorite charity or nonprofit organization. Simply name the organization of your choice as the beneficiary of the policy and pay your premiums on time.
Pay for Your Final Expenses
Funeral costs have been steadily rising for years, so it is important to make sure you have set aside the funds to cover your final expenses. Without an insurance policy to pay for them, your bereaved family will have to pay for the costs, adding a financial burden to the losses they have already suffered.