Term life insurance policies are meant to provide coverage for the insured within a specific time period. They can usually last for up to 25 years. But whatever the stated period of the term insurance policy, when that term expires, the coverage ends—unless there is a rollover or continuation provision.
Only a small percent of term life insurance pay out, because most people actually live past the expiration or cancellation date of their term life insurance policy. Therefore, they are a lot more affordable compared to whole life policies.
This is why term life insurance provides a very affordable way to ensure that your loved ones are protected in case they are suddenly faced financial burdens such as debt, tuition, living expenses, mortgage, and other expenses, should you die in an accident.
The main reason why people purchase a term life insurance policy is to obtain protection for their partner and/or their children. This is of utmost importance for the bread winner of the family, because his/her death could prove disastrous in a financial sense.
Even if the partner of the insured person is earning his/her own money, the reduced income that results from the loss of a parent will still heavily affect the family. That is why many financial planners recommend purchasing a level term life insurance as a very basic way to insure against such a loss.
This need increases when there’s a mortgage involved. Even with two people earning income, buying a house is still the biggest expenditure an American family will face. This puts a huge strain on the family budget, and when one of the parents dies, paying off the mortgage can be almost impossible… unless there is adequate life insurance.
Term life insurance policies give out a cash lump sum when the insured person deceases, cash that could be used as payment for the mortgage loan, or other asset protection. This can prevent the foreclosure and home loss that often afflicts many families who suffer a catastrophic loss. The surviving loved ones can stay in their home and grieve without having to worry about severe financial difficulties.
Even people who don’t have to worry about paying off a mortgage have other expenses. They still need to spend money on the usual living expenses, such as groceries, credit card balances, utilities and all the everyday costs.
Term life insurances can provide lump sum cash that can be set aside in a trust fund, which can then be used as means of replacing whatever monthly income was lost due to the insured person’s death.
Another issue that term life insurance addresses is medical bills. One of the most common reasons for personal bankruptcies is high health care bills, especially after a catastrophic injury or ailment. Such high expenses also happen with lengthy illnesses prior to death. End-of-life care and treatment of terminal illnesses can be quite significant, especially if there is no medical insurance.
With affordable term life insurance policies, you can clear any unpaid bills and even provide coverage for funeral services.
The good news is that you’re not alone. At Critical Illness Insurance, we can help you explore your best options and tailor a plan to meet your needs.
Call us now at 1-561-210-5822 and speak to our experienced and helpful agents to get the answers you deserve.