Term Life Insurance is Well Suited For Short Range Goals – Like 25 Years of Child Rearing
My husband and I have made the decision to buy term life insurance. Why term insurance? It’s simple. Term life was developed to provide the average person with temporary coverage knowing the average person would be constrained by a limited budget. Term can be purchased in fairly large amounts for a relatively small premium payment when compared to other insurance types, making it very well suited for short-range goals. When they say temporary coverage they mean coverage for term lengths of 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. When they say short-range goals they mean providing adequate insurance protection to cover the child-raising years.
Another part of the decision to go with term life insurance is that it is the simplest form of life insurance. I found enough to have to understand and think about with this uncomplicated insurance type and have no interest in having to take on anything more complex, like trying to leverage my insurance payments into an investment vehicle at the same time with cash benefits and payouts of differing amounts over varying amounts of time, depending on interest rate fluctuations and so on and so forth. Those are investment thoughts that, for me, don’t mix well with dead husband thoughts. And our limited budget really is a limited budget so this will have to be the most affordable type of insurance. Besides, as soon as it turns into an insurance plus investment decision we now will have to rely on the advice and opinion of a broker or agent. We were planning on using the internet for quoting and purchase. It is hard to develop a trusting relationship with someone dispensing investment advice in a chat room.
So since we are going to do our purchase online, if everything goes well we will start with term life insurance quotes, choose the best term life rate, make our purchase and continue on with our short-range goal of raising two children for the next twenty years.