6 March 2012 0 Comments

More Reasons Why Term Life Insurance Provides the Most Protection for the Least Amount of Money Today

Last time, I discussed why Term Life Insurance gives your family the most protection for the least amount of money today. In this entry, I’ll expand on that topic with a deeper explanation of the incredible value that Term Life Insurance delivers.

Life Insurance purchased for the benefit of surviving family members is typically being used to replace the income of the deceased worker. In the case of a stay-at-home parent, benefits are applied to the added expense of childcare when the caregiver dies. One might argue that the insurance is being purchased to provide funds for paying off a mortgage, or as a college fund for the kids. But in reality, all of these needs would have been provided for out of earned income had the working family member survived. When that family member’s life ends, so does their income. All Life Insurance purchased in a family setting is intended to replace lost income or, in the case of the non-working parent, to compensate for lost services.

The need for income replacement decreases as the breadwinner ages (since fewer earning years remain). Ideally, savings and retirement funds are growing during these working years. The breadwinner’s income becomes less necessary as retirement funds take over. At least, that’s the plan. Term Life Insurance may not be the best solution when the breadwinner must continue to work past the age of retirement in order to support a family. But more on that later, when I discuss the ins and outs of Permanent Insurance. For now, take a look at these sample term premiums.

Life Insurance Premiums

With premiums this reasonable, how could parents whose income is essential for the support of their children (and each other) not secure their family’s financial future with a Term Life policy? Those who care for their families buy as much Term Life Insurance as they can afford – even if it means sacrificing their daily coffee fix at Starbucks!

Coming Up Next: How Much Is Enough When It Comes To Buying A Life Insurance Policy?

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