Do You Need "Term" Life Insurance?

by Anna Glendenning | More from this Blogger

26 Mar 2006 10:33 AM

Would your family be able to survive without you or your income? It may be one of those topics most people would rather not think about, but the fact is how much would your family suffer if something happened to you? Even Stay at Home Mom's provide a financial benefit to their families. If you don't have enough financial security or assets to cover the sudden loss of one of the parents, you may need life insurance protection.

If you're not sure where to start ask yourself a few questions:

• Would my family survive without my contributions to the household and, or family income?
• Would my family be able to continue living where they currently do?
• Would my children need a nanny or full time care giver?
• Would my spouse have to take a job - or second job - to maintain our current lifestyle?
• Would my spouse need to hire additional help or services to replace the things I provide for our family?

Term life Insurance provides death benefit for a low cost premium for the first several years. As time goes by the premiums get more expensive. Only 2% of term policies ever pay a death benefit because most people drop them when the cost goes up. It is excellent for short-term coverage during important years of life, especially while parenting children. This type of policy provides you with coverage for a specified period of time. It only pays a benefit if you die during that specified period. There are policies that offer early benefits if you become terminally ill.

Is Term life insurance the best choice for your family? Consider these points:

• Do I need coverage for a relatively short amount of time?
• Do I need a large amount of coverage, but can only budget for a low cost plan?

If you answered, "Yes" to either question above, than term life insurance may be a good choice for you and your family.

It's possible to save money by paying your life insurance premiums on an annual basis, you can eliminate the extra charges associated with monthly, quarterly and semiannual methods of payment. If you would like to accumulate a cash value, consider whole life or universal life. Term life does not provide for any cash accumulation, but it is a very inexpensive type of life coverage.

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Glossary of Insurance Terms:

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z

Families.com Blogs are for informational purposes only. Families.com assumes no responsibility for consumer choices. Consumers are reminded that it is their responsibility to research their choices properly and speak to a certified insurance professional prior to making any decision as important as an insurance purchase.

Learn more about Anna Glendenning

Anna Glendenning is a mother of four. Two biological children grown and out of college, and two siblings and adopted together in 2003. Anna's Personal Website http://www.adoptiveparentsnetwork.

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