Throughout your life, you will likely celebrate many milestones, from graduating college and starting a new job to getting married or buying your first home. Each momentous occasion can bring new financial responsibilities, but how would your family handle those obligations if you passed away unexpectedly?
To help protect your loved ones and ensure they have the financial support they need if you are no longer here, term life insurance can provide a financial safety net they can count on during a challenging time, such as a sudden death. Term life insurance provides a set amount of coverage for a certain length of time, usually 10, 15, 20, or 30 years, and can help your family pay for daily expenses, pay off debt, or build up savings for the future. Here's how term life insurance can offer valuable protection through the different stages of your life.
Graduating college and heading into the workforce can be an exciting time. With a regular paycheck and potential employee benefits, you can take an important step toward building a strong financial future. But if you’re like many people, you may have graduated with student loans to pay off. On average, bachelor’s degree graduates leave college with around $26,190 in student loan debt.
What would happen to your remaining student loan debt if you were to pass away? Depending on the loan, it may fall back on someone to pay the remainder. This is where term life insurance can help—having a policy in place for the years you’ll be paying off loans can help protect your loved ones from shouldering additional debt. Depending on your student loan payment plan, a 10- or 15-term policy might be a good fit.
If you’ve recently married, it can be a time of financial transitions, including combining accounts, creating a budget, or purchasing a house. As you discuss your finances with your partner, life insurance can be a valuable addition to the conversation. If you both purchase a term life insurance policy and list the other as the beneficiary, you can help ensure that your significant other will have some financial protection if you were to pass away. The death benefit can be used as the beneficiary wants. Some options include:
It’s official, you’re a new homeowner! Purchasing a house is an exciting milestone and one worth celebrating. You may already have homeowner’s insurance to protect your new purchase, but have you considered life insurance? A term life insurance policy could be set up for the same length as your mortgage—15, 20, or 30years to help pay the outstanding balance. This way, if you were to pass away, your family would not be forced to move or sell the house during a difficult time. A life insurance policy can help your loved ones pay the mortgage and keep your house your home.
If your family depends on your paycheck, they could take a big hit financially if you were no longer here to support them. The death benefit from a term life insurance policy can help replace lost income if you pass away during your working years to assist with paying the bills, caring for children, and maintaining their lifestyle. The length of the life insurance policy can be determined based on the years until your children become adults and may even provide some money for their college education, alongside funeral costs. Some term life insurance policies include living benefits, which may allow you to accelerate a portion of the death benefit if you’re diagnosed with a qualifying illness.1
Life is full of many exciting and happy milestones. By protecting your family with term life insurance, you can create a financial safety net for a time when it’s needed most. With many budget-friendly coverage options and various terms, you can find a policy that meets your needs, helps alleviate financial stress about the future, and gives you and your family the peace of mind you deserve to enjoy every moment on the road ahead.
1Subject to eligibility requirements. Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.