4 Reasons Why Purchasing Term Life Insurance is Important for Every Family

Term life insurance does not just protect you ​​— it protects your entire family.

If you’ve considered purchasing term life insurance for your children, that’s probably not the best way to go about protecting them. Life insurance is primarily used to protect dependents if something happens to their breadwinner, which would be you or your spouse. There are situations where a child may need life insurance, but the more suitable plan would be for you to buy a policy for yourself. Although you are the one with the life insurance coverage, it can protect your entire family. Find out why it’s so important to have life insurance as a parent. 

4 Reasons Why Purchasing Term Life Insurance is Crucial as a Parent

1. Your Children Will Have a Financial Future

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If you were to pass away suddenly and you were the breadwinner of your family, how would your family continue to pay the bills? It’s likely that they couldn’t pay them. When purchasing a term life insurance policy, you can buy a policy with enough coverage to make sure your family can pay their bills for a certain period of time. The death benefit can be used to pay for day-to-day expenses and living expenses like groceries, utilities, car payments, and more.

The life insurance policy can also cover your debts, so your family is not responsible for paying them. Millions of Americans have accumulated debts such as student loans, mortgages, and credit card debt. When you pass away, there is a potential for the company to pass those debts off to your beneficiaries, estate, or heirs. Purchasing your life insurance policy can ensure that your debts will be paid off, and it is not another burden for your family to endure.

2. You Can Leave an Inheritance

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It takes a lot of time and stability to save up enough money to build an inheritance for your children. Understandably, a large amount of Americans do not have enough money to put aside to create an inheritance, but it’s something that we all wish to do for our children. With a life insurance policy, you can make sure that the payout is given to your children as an inheritance, or you can even use that money to donate it to a charitable organization. 

A policyholder can name multiple beneficiaries and determine how they would like the money to be spent and split up between them. With an inheritance created through a life insurance policy, that money is not taxed before reaching the heirs. Of course, there are exceptions, but it’s a great way to give your children a step into financial security. 

3. It Offers Security to Your Spouse

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The breadwinner should not be the only spouse to purchase a term life insurance policy — both significant others should buy a plan. Although it’s a common assumption that only the spouse providing financial support needs life insurance, that is not the case. Stay-at-home parents should also consider purchasing life insurance because their contribution is taking on the brunt of caring for their children. For example, if the family’s caretaker passed away, it’s doubtful that the surviving spouse could handle working to provide financial support and take care of the children. The life insurance payout could be used to pay for daycare and household help.

4. It Reduces Stress

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When a family member passes away, it’s heart wrenching for the children, spouse, extended family, and friends. It can shatter a community, and the last thing the immediate family wants to think about is their finances. A life insurance policy can’t solve all of the problems, but it will help the surviving family members pay their bills, cover debts, or protect themselves. In addition, it can give you peace of mind that no matter what happens, you are doing everything you can to ensure that your loved ones are taking care of even after you pass away. 

There are countless excuses not to purchase life insurance, but a lot of them can easily be debunked. Buying a term life insurance policy is highly inexpensive and can not only give you peace of mind but protect your family and their finances. With Fabric, you can quote policies and organize your finances easier than ever before. The application and website have been designed for responsible humans with kids so that you can tackle your parental must-dos as quickly as possible. Learn more and get started today to purchase the most suitable term life insurance policy for you and your family.