Milestones when Term Life Insurance Makes Sense
Originally Posted On: https://www.iquanti.com/
Term life insurance is an affordable and straightforward type of life insurance that allows policyholders to purchase coverage for a set period of time. It can provide a safety net for your family in the event of your death and give you peace of mind knowing that they will be taken care of financially if something happens to you.
There are a few milestones in life when getting a term life insurance policy can make a lot of sense. Here are some of the big ones:
When you take out a mortgage
Your mortgage is likely to be the biggest debt you’ll ever take on, so it’s important to make sure your family would be able to pay it off if something happened to you. Taking out a term life insurance policy roughly equal to the length of your mortgage can give you peace of mind that they would still be able to make payments if something happened to you.
When you get married
If you’re getting married, it’s a good time to think about taking out life insurance. If something happened to you, your spouse would be left to deal with everything on their own. A life insurance policy can give them financial security and peace of mind during a difficult time.
When you start a family
Deciding to start a family is another key time to consider life insurance. If you have young children, they would be left without a parent if something happened to you. A term life insurance policy can help ensure your family is financially taken care of if you pass away unexpectedly. Many new parents opt for 20-year term life insurance so they’re covered until their children reach adulthood.
When you start your own business
When you have a business, people depend on you. If you passed away, would your business be able to continue without you? Would your family be able to keep the business going? Taking out an affordable term life insurance policy can give you peace of mind that your family and the company are taken care of financially if something happens to you.
When you go freelance
If you go from full-time work to freelance, you’ll likely lose your employer-sponsored life insurance. This is another time when it makes sense to get your own term life insurance policy, particularly if you have a family or people who depend on your paycheck.
Deciding whether to get term life insurance
These are just some of the key points in your life when taking out term life insurance could make sense. If you’re at one of these milestones—whether you’re going freelance, expecting a child, buying a house, getting married, or something else—consider whether a term life policy is the right move. If you’re actively looking for a policy, shop around, ask questions, and ensure you understand the terms.