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Parents have the responsibility of bringing up their children in the best way they know how. Along with this comes the obligation to take care of their own health. Even so, it makes sense to try to cover a large variety of eventualities.
One of those eventualities will inevitably be that the parents sadly are no longer around. With a life insurance policy, parents are able to continue their legacy come what may.
For many parents, a life insurance policy may seem like an extra expense that simply is not worth having. Truth of the matter is however that if you as a parent are looking after your children’s wellbeing, then you ought to at least consider a budget friendly option.
It may come down to keeping a roof over your children’s heads, or to meeting the costs of a funeral service and cremation. Or, a policy could come in handy for paying for the kid’s education. There are numerous potential benefits that you’ve possibly never even considered.
What types of policy are available to parents?
Term life policy
A term life policy is a type of insurance that only covers a certain period of time. The benefit of this type of policy is that it’s very cheap indeed – costs no more than a MacDonald’s burger and fries once per month. The downside being, as mentioned, it only covers a certain time frame.
In essence, after the term agreed to expires, the insurance cover is no longer valid. Typical term lengths are 10 years, 20 years, and 30 years. Further, unlike other policy types, there is no cash value included.
Permanent Life Insurance
Permanent life insurance can be purchased alone, or indeed – a term insurance deal can be converted over to permanent. In essence, a permanent plan is exactly that – as long as the parent continues to pay the monthly premiums, the life insurance continues on a permanent basis.
This form of policy has the benefit that it accumulates a cash value in addition to the life insurance. On the other hand, it is that much more costly than term insurance.
Buying Life Insurance at an Early Age
There are benefits to purchasing life insurance at an early age. In effect, the younger you are, the less expensive the insurance will be. Purchasing life insurance at an early age tends to be cheaper than buying at a later stage. What’s more, with many insurance policies, the monthly premium remains the same for the duration of the policy.
If you could pay the same for gas as you did 20 years ago, no doubt you would jump at the opportunity. Well, it’s the same idea here too except in this case you swap the gas for an insurance policy.
As a parent, it makes good sense to make an investment in life insurance. Even if you don’t ever use it, at least you have the peace of mind that no matter what happens, your own children will have their future needs secured.