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Term Life Insurance For Parents Explained

Originally all life insurance policies were term life insurance policies. Term life insurance is defined as a policy that you choose that offers coverage at a fixed rate of payments for the time period that you choose - the "term" of the plan.

If that term expires and you are still around to enjoy it, the policy expires and you must either renew or find another life insurance policy. No money is paid out.

If, however, you die during the term of coverage the money is distributed to your beneficiaries and/or their guardian (if your children are minors).

This type of life insurance is much like other forms of insurance: when you purchase auto insurance, for example, you pay your premiums for a specific time in order to have protection in case something happens.

 If you reach the end of your policy, and nothing has happened, you don't get that money back. Term life insurance, just like the auto insurance example, is purely a form risk protection.

Term life insurance is also the most affordable life insurance on the market. If you're a healthy person under the age of 50, chances are you'll find a good term life insurance policy that's very affordable.

So, if you're a young parent who can't spend a lot of money on an insurance policy, term life insurance might just be for you.

Just be sure to choose a term that's long enough. If your kids are young, you'll want to get a longer term to cover them until they reach adulthood. Term life insurance can be purchased for up to 30 years, which could provide financial support for your family well into the college years.

If, on the other hand, your kids are older you might want to go with a shorter term.

You can also choose a term that ends around your retirement, when many pension plans and investment plans come to fruition and offer your family another form of financial support should something happen to you.