There are approximately 255 (4.3 each second) babies born each minute around the globe, according to the U.S. Census Bureau. Along with births, there are approximately 150,000 (6,000 each day) deaths are reported each day around the world. These deaths are attributed to disease, violence, fatality, and famine. Unfortunately, too many die uninsured, leaving their families with the burden of debt. The only solution here is term life plans. What is the term life? How can it help ease the burden of death for the deceased’s family? Find the answer to these questions and much more in the article below.
Covers Burial Expenses
A funeral cost anywhere from $7,000 to $12,000 on any given day. These expenses can be decreased by about five thousand dollars if you decide to have the deceased cremated. Unfortunately, funeral expenses around the world are gradually increasing. For average consumers, these fees are not feasible, which is where life insurance could come into play.
This policy will cover all or most of your funeral expenses. In most cases, a term insurance policy will cover the funeral and still leave money for paying off debt. This is especially important for people who know they will die owing to debt. If you die today, will your family be financially comfortable? Hardly anyone can say “yes” to this question and be honest to themselves and others unless they are insured.
Unlike some insurance policies, term life plans are extremely flexible. This basically means the policy can be customized to meet your insurance needs. For example, the death benefit (the lump sum payout) can be increased and lowered at will. If you believe your family will require more money after your death, you can increase the policy accordingly. Doing this will allow the inheritor to pay your funeral expenses and have cash left to pay off lingering debt.
Term life policies also have flexible premiums. This is especially important for low- and median-income households. If you can only afford to pay a small monthly premium, you will have this option. It is crucial to note that lower premiums can sometimes equal a lower death benefit. However, this is not always the case. If you find a reputable insurer, you may get the best of both worlds. A policy with low monthly premiums and a decent lump sum payout.
Almost Immediate Payout
One of the most notable benefits of term life policies is the speed of payout. If you work with the right insurer, your payout will only be delayed for a few days. Most insurers understand the burdens families are left with following a funeral, which is why they attempt to speed up the claim process, resulting in an almost-immediate payout.
Your family is counting on this money to pay for your funeral and other debt. Finding a reputable insurer can be time-consuming and frustrating with so many to choose from. Do your research and quote comparisons to get the best deal. You can also contact your local insurance company to request a quote, which will compare two or more policies.