Readers Question?
What other reason is Term Life Insurance used for?
Fred
Houston, Texas
Interesting Question.
A good use of term life insurance is to buy a large amount that would cover a loan. For example a loan on the home, a mortgage as that is a temporary and defined time period. For paying off the mortgage, the loan is a short range loan to fulfill a short range goal.
If you have a loan that you fear might be unpaid in case of your death, you can request term life insurance so in case you die, your loved ones do not start a new life with debt. This is a good idea to use during the child rearing years.
Usually Term Life Insurance is during the years of your life when you are expected to be the most healthy and least likely to die. This allows you to protect your loved ones in the event of an accidental death, where something happens to you unexpectedly.