Life Insurance: Protecting Your Family
Life insurance is recommended for most people, even if they have no family. This insurance allows you to provide financially for your family following your death. This is especially important for families with children who would struggle financially in case one or both parents die. The money can replace the deceased spouse’s income, pay for college, pay off debts, and pay for burial expenses. You can also get coverage for children.
Term life and whole life are the two most popular forms of life insurance. The term life policy provides coverage for a specified number of years. This usually ranges from 1 year up to 30 years. The whole life policy provides coverage that never expires.
Most people choose term life because it costs less than whole life. The disadvantage is if you outlive the coverage period, then there will be no payout when you die. Whole life costs more, but there is a guaranteed payment upon death, no matter how long you live. Some whole life policies also offer investment options.
You can also inquire about an accelerated death benefit. If you are diagnosed with a terminal illness, then you can use some of the death benefit to pay for medical expenses. But any money used reduces the amount your beneficiaries will receive upon your death.