When do I need Term Life Insurance?

Life insurance is purchased for spouses, children, significant others, and loved ones who are left behind when you pass away. Buying a life insurance policy is a selfless act, since the death benefit protects those who depend on your income to maintain their standard of living. It might be the right time to consider life insurance if:

  • You have people who need your income to be replaced at some level
  • You recently had a child and/or have young dependents
  • You just purchased a new home
  • You serve the role of caregiver for a parent or family member
  • You wish to leave a legacy for your children

Protect Loved Ones in Your Absence

While many understand the purpose of life insurance, it’s sometimes confusing to know when to purchase it. Life has a funny way of deviating from the best-laid plans, whether it’s the birth of a new child or the diagnosis of a serious illness. 

No one can predict the future, but ask yourself this question when assessing if it’s the right time to buy life insurance. Are there people whom you care about or support financially whose quality of life would suffer if you died? If the answer is yes, then it’s time to explore life insurance coverage for your short and long-term needs.

If you want temporary protection for a finite period of time with the flexibility to reevaluate your needs once the plan expires, then term life insurance may be an excellent option. Whether purchased for 10, 20, or 30 years, term life insurance offers peace of mind in the knowledge that loved ones have a safety net after you are gone, and won’t be burdened with economic hardships. The death benefit is a tax-free source of cash that can also help beneficiaries cover funeral costs, estate taxes, and other debts left behind.

Milestones and Lifestyle Changes That Merit Life Insurance

Young Dependents

Living expenses and fiscal obligations are bound to increase after having children. If you were to unexpectedly pass away, would your family be able to cover day-to-day expenses for groceries, clothing, rent, daycare, or ongoing education? Life insurance for parents can help cover these costs, ensuring offspring and surviving spouses have a financial buffer after you die.   

New Home Purchase

Nearly half of all homeowners take out a mortgage for this milestone purchase. Would your family be able to make the monthly mortgage payment upon your untimely death, or would they be forced to move or face foreclosure? Life insurance can provide your loved ones with the capital to pay off a mortgage.

You Are a Caregiver

You have assumed the role of caregiver for an aging parent or ill sibling who does not have the financial means to pay for their living or medical expenses. By naming them as your life insurance beneficiaries, the continuity of their care is safeguarded in the event of your death.

Supporting a Partner/Spouse

You are the sole or primary breadwinner in your family, and your partner relies on your earnings to cover basic living expenses.  A life insurance death benefit helps your dependents by replacing the income you earned, whether you were a business owner, salaried employee, or were self-employed.

Preparing for Retirement

You plan to retire in the approaching years, but still carry heavy debt from business loans or other ventures that could be passed on to your spouse or family when you pass away. Term life insurance may also make sense if you plan to work part-time after you retire, and you want your partner protected against this lost income if you die before the policy matures.

As your family situation, earning ability, debt-to-income ratio, and health change over the years, so will your insurance needs.  When a term life policy expires, it can be replaced with a new plan that accommodates your coverage requirements.

Find Affordable Life Insurance Rates

Life insurance rates can vary widely; it all depends on the carrier, type of policy, and your underwriting criteria. Compare Term Life Insurance Policy Quotes online to find the best product for your needs, objectives, and budget. Our streamlined platform features electronic applications and – in some cases – an accelerated underwriting process for fast approval.  

At Direct Life Quote, you can compare costs across leading insurance providers, allowing you to find the right plan for your goals without overpaying.  Get started today with our fast and free service.

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