When you list all of your assets and liabilities, you may discover that you need additional resources left behind for your loved ones. This can be done with term life insurance.
Term life insurance carries many benefits and helps give you peace of mind about the future of your loved ones and their care. Here are some of the benefits associated with using term life insurance in comparison with other options:
- Term life insurance has an affordable premium. In a sense, you can think of this as renting life insurance from the company for a specific period of time, such as between 10 or 30 years.
- You can add on additional coverage for disability, accidental death or critical illness and pay extra premium to cover these.
- Liabilities can be covered since the money can be used for any purpose such as personal loans, a home car or other outstanding debt, and this minimizes the possibility that your family members will face a financial burden repaying loans after you pass away.
- Leave behind a legacy. Whether you wish to support adult children’s pursuit of education or provide specific financial gifts that help your family through this period of transition, a term life insurance policy makes it simple, while other assets may be held up in the probate process.
Life insurance passes according to a beneficiary designation that you file directly with the insurance company, so you can determine how much of each policy payout you want your loved ones to receive. Consider incorporating term life insurance as part of your overall estate plan with the help of a Pasadena lawyer.