In today’s modern society, the world of insurance has become the land of endless options.
From the common selections of health insurance and car insurance to the more unique and niched choices such as “Cold Feet” insurance and Alien Abduction insurance (both very real options mind you), there is no shortage of ways to protect something you hold dear.
However, one type of insurance that many people need but don’t have is term life insurance. We talk about finances a lot on this blog, but one financial move you can’t neglect to make is getting adequate life insurance.
Thanks to today’s technology, you can narrow down a coverage option and find out what you’d be paying for insurance in a matter of minutes. Although there are a few types of life insurance on the market, learn the 7 top reasons why term life insurance can be a great option for so many families.
What Is Term Life Insurance?
Term life insurance is one of the most straightforward and basic types of life insurance.
It’s meant to provide you with coverage for a specific amount of time (hence, term), no matter what. Life insurance is a contract where the insurer agrees to grant the insured (you) coverage in exchange for a monthly premium. Your term can range anywhere from a few years to well over 20 years.
During that term, you lock in a coverage rate, and your beneficiaries would get paid that amount in the event that the unexpected happens during the term period.
Personally, I love term life insurance because it doesn’t come with all the hoopla that surrounds other types of insurance and financial concepts. While term life insurance is easy enough to understand and apply for, check out the top 7 reasons why you should consider it for your coverage needs (if you’re still on the fence).
7 Reasons Term Life Insurance Is A Winner
If you’re on the fence or even just a little intrigued about term life insurance and find yourself asking, “What’s in it for me?”, then read on my friend. Here are the top 7 reasons to get term life insurance.
1. It’s Simpler
Many people find life insurance complicated and confusing and have a negative view of it altogether. The insurance options that are available tend to have a lot of jargon that makes it difficult to understand what you’re actually getting which can lead to distrust amongst the masses.
Enter term life insurance to save the day.
It is pure insurance meaning there are no add-ons as some other life insurance policies have. Term life insurance’s sole function is to cover you and your loved ones if something unfortunate happens to you.
While we live in a world that loves bells and whistles, term insurance is strong enough to stand on its own.
2. Cost Effective And Easy To Acquire
Unlike its competitors, term life insurance offers great prices for high coverage amounts because it is just insurance and nothing else.
We’re all about budgeting and saving money over here. In addition to stretching your dollar, term insurance is easier than ever to get today as the world of insurance and tech has teamed up. A fine example? Bestow.
Bestow is an online independent agent and third-party administrator for term life insurance. They have amazing coverage ranges (from $50,000 to $1,000,000) and are all about getting you the coverage and term that suits your specific needs.
Just want to see what your life insurance options in terms of coverage and price without fully committing yet?
They offer free quotes that you can obtain in just seconds with no pressure to buy. But if you did decide to take them up on their awesome offer, you’d have coverage in minutes.
Now that all the excuses are out the window, go check them out. Seriously though, what I love about Bestow is that their quotes are quick and simple. I don’t like going to insurance sites and having to fill out a ton of information only so I end up getting told to enter my email to receive a quote (along with a dozen follow up emails about getting insured as a result).
Bestow is not like that. You just enter a few basic details about your situation on their website quote form them voila – you have a term life insurance estimate. There’s also no doctors or medical exams to worry about for most applicants so this eliminates another often tedious step in the process.
3. Cover Your Final Expenses
We never know what will happen from one day to the next. I know no one likes to think about this, but it’s better to be prepared for the unexpected than leave your loved ones behind with a ton of financial burdens.
Term life insurance can help provide peace of mind knowing that your loved ones would have a financial sum to cushion them.
We all have the best of intentions to take care of our final expenses such as funeral costs. However, most times we plan to do this “tomorrow” and it never comes.
Getting set up with term life insurance now (again, Bestow does this quickly and painlessly for you) will cross that worry off your list.
4. Replace Your Income Or Your Partner’s Income
If something suddenly did happen to you or your partner, your term life insurance policy could supplement the income they were once bringing in.
A term life insurance payout provides you with a window to keep afloat as you search for a replacement income source and it helps to lift the cloud of financial worry in the wake of an unfortunate and unexpected loss.
One thing I really don’t like about current society is that most Americans feel like they can never afford to take a day off from work or focus on self-care. Most people live paycheck to paycheck and are unable to feel comfortable with taking time off to rest, grieve, or regroup.
This is why having insurance is so important. Aside from life insurance, I’ve been considering looking into disability insurance for myself just to cover all of my bases.
5. Not Leaving Your Family With A Large Debt Burden
Bills, debts and mortgages are a large reason why having term life insurance is a good idea.
Having the security of term life insurance means that you can decide with your partner how the money will be used in advance and create a plan so your family can reduce all debts or become totally debt-free with the death benefit income.
This removes a ton of financial pressure that usually falls on a family unit when a key income-producing member passes away.
Remember, you want to leave assets and an inheritance, not the burden of debt.
Related: 7 Common Life Insurance Mistakes You Need to Stop Making
6. Help Secure Your Child’s Future
The money from a term life insurance benefit can be used to fund your child’s academic goals.
College and university are costly, and if a loved one who used to contribute to an education fund is no around, this financial aid can be a gift for your child’s next stage in life.
7. Provide Extra Protection For Your Business
While owning a business can be great, it can also be costly and a high-pressure endeavor. Trust me, I know!
If you have a business (especially a family-run business) and it’s not well established yet, then you need to be sure your business can meet all of its financial obligations, even after your passing.
Having term life insurance can add protection for your family so your business doesn’t become a burden.
Summary
Although thinking about life insurance and why you need it can be difficult and uncomfortable, it is a very important asset to have in your financial wheelhouse.
Term life insurance provides you with many benefits, but this equation sums it up perfectly:
Not breaking the bank + peace of mind + releasing your loved ones from sudden financial burden during an already difficult time for them = Priceless
Want to make the process of obtaining term life insurance quick and easy? Take the time to check out Bestow and see how they can support you in setting up your term life insurance coverage today.
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