What would happen to your family if you passed away? Would they still have the money they needed to cover daily expenses and plan for their future? Or would the rising cost of living leave them pinching pennies just to get by?
If you’re not sure, it’s time to start thinking about buying life insurance.
Contrary to popular belief, life insurance isn’t just for your parents or grandparents. It’s there for you to protect your loved ones from financial strain.
Here are a few great types of life insurance that young families should consider investing in.
Term Life Insurance
Term life insurance allows you to take out a policy for a set number of years. If you pass away during that term, the insurance will issue your loved ones a life insurance settlement. They can then use that money however they see fit.
Term lengths range from 10 to 30 years. Once the term is up, you’ll need to buy a new policy to maintain coverage.
Since the policies don’t last forever, term life insurance premiums are usually lower than other coverage options, especially when you’re young and healthy. This makes it easier for you and your spouse to buy coverage at the same time.
Whole Life Insurance
Whole life insurance allows you to buy a single policy that will stay active for your entire life. Your premiums will never go up even if you develop health problems. And these policies give you the chance to earn dividends on any investments made with your monthly premium payments.
However, since the coverage lasts as long as you continue to pay for it, it typically costs more. Whole life insurance is great for families that don’t want to worry about coverage expiring and there are different types of whole life coverage to help you find a policy that fits your needs.
Even better, you won’t be stuck with the insurance if you decide it’s not worth keeping down the line. You may be able to sell your policy for cash. Make sure you use a life settlement calculator before you accept an offer.
This way, you’ll know you’re getting the best deal possible.
Guaranteed Life Insurance
Both term and whole life insurance are great types of insurance for healthy families. But what do you do if you have underlying health conditions that make qualifying for coverage difficult?
Guaranteed life insurance may be a great choice.
With this type of life insurance, you’re able to get coverage regardless of your age or health. However, since these policies are easy to qualify for, they typically offer lower coverage amounts.
Consider These Types of Life Insurance
These types of life insurance are just a few of the options you’ll have to protect your family. When choosing a policy, think about your loved ones’ needs and your budget.
As long as you shop around, you’ll be able to find a policy that meets your needs without breaking the bank.
Looking for more ways to improve your family’s financial situation? Check out our latest posts for more tips and tricks to help you boost your savings.