Suppose you were to die tomorrow, would your spouse be in a position to meet the day to day bills as well as the monthly mortgage repayment on a single salary? It is very unlikely that it would happen that way. They might not be able to live up to the same standard of living as before. Or perhaps they would have to sell house and move to a smaller place; the children would be affected from the change in neighborhood and perhaps the school too. Coping with just one salary would be very difficult and it would put your spouse under tremendous financial pressure as if coping with the grief wasn’t enough. This is where the life insurance comes in and one can choose from term insurance, whole life insurance, mortgage insurance, term 20 insurance and so many more.
Term Life Insurance Benefits
The good news is that life insurance is not all that expensive and fixed term insurance is quite affordable. Besides it pays out the entire amount that the policy holder is insured for if he dies within the term of the policy. It is among the simplest and cheapest kind of life insurance covers that are available today. This is because if the policy holder survives the policy term then it just expires and no payment is made at all. Since they make a payment only if the policy holder dies within the policy term, the premiums are a lot cheaper than in the case of other kinds of life insurance polices.
The fixed term insurance might also come with added benefits like payment of the whole sum in case the policy holder is diagnosed of a terminal illness like cancer during the policy term. Normally when you opt for term life insurance you will try to match it with your individual financial situation. For instance, if you have twenty years to pay off your mortgage, then you would require life insurance to cover at least as many years as it will take you to pay off your mortgage. Or you may decide to let it run until it is time for you to retire. Whatever insurance policy you might choose, it is advisable to shop around first and see the different options available.