When you are just getting started in your adult life, it can often seem as though there simply isn’t enough money to go around. Each time you make a major change such as getting married, buying a house, or having children, it gets harder to make ends meet. Along with this comes the need to be able to provide for your family’s financial stability no matter what happens. For example, if something should happen resulting in your death, your life insurance policy is there to protect your family and provide for them, keep them in their own home, and allow them to maintain their standard of living. It can also help give your surviving spouse time to grieve, make important life decisions, and if necessary find employment outside of the home. However, there are a few common myths that often lead young families not to purchase the life insurance coverage they need.
The Only Person Who Needs Coverage is the Primary Earner
No matter whether you are the one who brings home the largest or smallest paycheck, any loss of income is going to affect your family’s quality of life, especially if paycheck to paycheck is a common occurrence. Keep in mind that even if you are a stay-at-home parent, you still provide exceptional value to your home and should something happen to you, replacing you with a paid housekeeper can be very expensive. With the right life insurance coverage, including burial insurance, your family will be properly taken care of in the event of your demise.
Even If I Only Buy Term Life, I Can Always Renew It When the Time Comes
Young families seem to favor term-life over permanent-life as the premiums are more affordable. They seem to think that they can simply replace their term policy once the term runs out. To be sure, term life tends to offer more coverage for lower premiums. It can even be the best possible coverage for a young family to cover things that will disappear over time such as a mortgage or to help pay for college for their children. The problem is, that once the initial term has expired, it could cost far more to renew as your age and health change. Even worse, if you are in poor health, you may not even be able to renew your insurance policy.
The Only Thing You Need Is Term Life Insurance
While term life insurance may be an excellent choice for young couples, who are struggling to make ends meet as they need the most coverage at an affordable rate. But at the same time, this is not the only type of insurance coverage you need. For example, burial insurance is specifically designed to cover all your funeral expenses, leaving the rest of your life insurance to provide for your family. Permanent life insurance accrues value as you get older, in fact, you can borrow against the policy for things like college, a down payment on a home, emergency medical bills, and so forth. You can always start with a small policy and increase your coverage as you can afford to. The most important thing to keep in mind is to have enough coverage to protect your family in the event of your untimely death.