Term life insurance: a smart and affordable option for securing your family’s financial future

In the wake of the COVID-19 pandemic, there has been a significant shift in people’s priorities when it comes to their financial well-being. With mortality at the forefront of many people’s minds, there has been a surge in the number of Americans seeking life insurance coverage to protect their families. In fact, a recent study found that 31% of Americans are now more likely to buy life insurance, up from just 11% in 2011.*

Despite this increased interest, there is still a common misconception surrounding the affordability of life insurance. Many people overestimate the cost of life insurance by as much as three times the actual cost, leaving too many families vulnerable to financial hardship if a loved one passes away unexpectedly.

One type of life insurance that is often overlooked is term life insurance. This type of insurance can be an attractive option for many due to its affordability and the peace of mind it provides. With term life insurance, families can rest assured knowing that they will be able to maintain their lifestyle and keep their dreams within reach even if a family wage earner dies.

In the past, buying term life insurance may have been a lengthy and complicated process. However, today’s insurance companies have made it easier than ever to purchase term life insurance. Many companies now offer an accelerated application process, faster underwriting, and more efficient application processing, making it easier for people to get the coverage they need.

Term life insurance can also be a central pillar of a long-term financial plan. It can lock in your insurability, or the ability to qualify for insurance, at the same time it locks in affordable death benefit protection for a set period of time. This can be especially beneficial for those who may have health issues or are at an age where they are more likely to develop health problems.

Let’s take a closer look at the benefits of locking in future insurability with a term life insurance policy:

  1. Protection through health changes: As people age, they are more likely to develop health problems that could make life insurance more expensive or even disqualifying. Many term life policies have a conversion feature, which allows a policyholder to convert their term policy to a permanent policy before it expires without going through another medical exam, regardless of health changes. This ability to lock in insurability is advantageous given the many health changes you might experience throughout your life.
  2. Protection through job changes: The pandemic has resulted in 10% of workers losing employer-provided life insurance coverage. Even those with employer-provided group coverage often overlook the employee-paid, Optional Term Life plans during open enrollment, leaving them with inadequate protection. While it’s ideal to have a combination of coverage individually and through your employer, term insurance offers higher levels of coverage and more stability during employment disruptions.
  3. Protection against debt and final expenses: Americans are currently carrying approximately $14.35 trillion in mortgage and non-mortgage debt. Life insurance can help your loved ones pay off debts while maintaining their lifestyle and forging ahead in pursuit of their hopes and dreams.

Term life insurance is an important consideration for anyone looking to protect their family’s financial future. With its affordability, accessibility, and long-term benefits, term life insurance is a smart choice for those looking to secure their insurability and provide for their loved ones in the event of an unexpected death.

It’s important to note that when it comes to purchasing term life insurance, it’s crucial to work with a reputable and trustworthy insurance provider. Look for a provider with a strong track record of customer service, financial stability, and a wide range of coverage options.

In conclusion, the pandemic has brought about a renewed focus on the importance of financial well-being and the need for life insurance coverage. Term life insurance is an attractive option for many due to its affordability and long-term benefits. By locking in your insurability and securing affordable death benefit protection, term life insurance can provide peace of mind and financial security for you and your loved ones.

*Source: LIMRA, Life Insurance Barometer Study, 2021.

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