Purchasing life insurance is an essential step towards financial safety for young families. However, if you’re a young couple, you may not think this type of expense is worth it, especially if you’re putting most of your money towards a mortgage, retirement savings, and preparations for kids. However, getting term life insurance is an easy way to provide coverage without extending your budget. Here are a few reasons why this type of insurance is a smart financial choice for young families.
It’s Customizable & Less Expensive
Young families have different needs for their lifestyle and finances. Term insurance provides coverage for a certain amount of years, letting you customize the amount of time you want the policy — whether it’s 10, 15, or 20 years. As a result, it’s more affordable than whole life insurance, which provides coverage for life but offers extras like cash values, thus increasing the price. Whole life is a better choice if you’re closer to retirement.
It’s Simple to Understand & Update
This type of policy only pays out to your beneficiary if you pass away before the term ends. Whole life is more complicated due to its investment components the aspects of building cash value over time. There are also hidden fees and commissions that can appear for this coverage.
However, if your needs change over time — for instance, if a child is preparing for college — it’s easy to change to a whole life option. A term life insurance policy may be an excellent fit for you currently, but you may realize in a certain amount of years that whole life works better for your financial goals and lifestyle. Note that many term policies have a limited period in which you can convert to whole life, so ask your agent about this period in case you want to update your policy.
Thinking about purchasing a term life insurance policy to support your family? Quinn Agency, LLC in Meadville, PA, provides everything you need at an affordable price. Since 1992, Jeffrey Quinn has helped young couples and families find the best coverage for their needs. The agency also offers auto, home, and farm insurance. To get started with a quote, visit their website or call (814) 337-2766.