Learn and Plan | Term life insurance policies for every milestone
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Term life insurance policies for every milestone

Nov 6, 2023, 8:44:57 PM | Reading Time: 4 minutes

Life is full of milestones. Graduating college, getting married, buying a house, and starting a family are all momentous occasions, each of which can bring new financial responsibility. But, what happens to those financial obligations if you pass away?

Term life insurance can help protect your family throughout life’s milestones and ensure they have the financial support they need to keep up with the bills, cover final expenses, or create savings for the future. Term life insurance provides a set amount of coverage for a certain time, usually 10, 15, 20, or 30 years. These lengths of time can pair nicely with different financial responsibilities that come and go throughout the various stages of your life. Let’s take a look at a few.

Student loansStudent loans

Entering the workforce after finishing college can be an exciting time, where you enjoy a steady paycheck, take advantage of employee benefits, and begin to create a financial foundation to build your life upon. But if you’re like many students, you may have graduated with a student loan balance to pay off. In fact, bachelor’s degree graduates leave college with an average of $26,190 in student loan debt.

Have you thought about what might happen to your student loans should something happen to you? Depending on the loan, it may fall back on someone to pay the remainder. This is where term life insurance can help—having a policy for the years you’ll be paying off loans can help protect your loved ones from shouldering additional debt. Depending on your student loan payment plan, a 10- or 15-term policy might be a good fit.

Getting marriedGetting married

If you’ve recently tied the knot or are planning to get married soon, your finances may be going through some changes, whether getting a joint bank account, co-signing a lease, buying a house, or creating a shared budget. As you discuss your finances with your significant other, life insurance should be an important part of that conversation. If you both purchase a term life policy and list the other as the beneficiary, you can help ensure that your partner will have some financial protection if you were to pass away. The death benefit can be used as the beneficiary wants. Some options include:

  •  Funeral expenses
  •  Living expenses
  •  Debt repayment
  •  Medical costs

Buying a houseBuying a house

You’ve signed the papers, picked out the paint colors, and are ready to move into your new home. Congrats! Hopefully, you already have homeowner’s insurance to protect your new purchase, but have you considered life insurance? A term life insurance policy could be set up for the same length as your mortgage—15, 20, or 30 years— to help pay the outstanding balance or it could pay for other expenses. This way, if you were to pass away, your family would not be forced to move or make quick decisions during a difficult time. A life insurance policy can help your loved ones pay the mortgage and keep your home.

Income replacementIncome replacement

If your family depends on your paycheck, they could take a big hit financially if you were no longer here to support them. The death benefit from a term life insurance policy can help replace lost income if you pass away during your working years to assist with paying the bills, caring for children, and maintaining their lifestyle. The length of the plan can be determined based on the years until your children become adults and may even provide some money for their college education, alongside funeral costs. Some term life insurance policies include living benefits, which may allow you to accelerate a portion of the death benefit if you’re diagnosed with a qualifying illness.1

Through all life’s events, term life insurance can help ensure your loved ones are financially prepared for the unexpected. As a budget-friendly, temporary option, you can choose a term length and coverage amount that matches your needs and goals and offers the peace of mind you deserve to focus on each milestone.

1 Subject to eligibility requirements. Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.