Term life insurance can be a good fit for most young families — but keep in mind that both parents, if possible, should be covered. You also need to plan for your new family, which means facing questions like “What will happen to my child or partner if I die?” Life insurance is one way to provide for them financially should the unexpected happen.
A study by LIMRA found that 42% of American households would have financial hardship within six months if the wage earner passed away. Individuals with young families want to ensure their children are cared for if something happens to them. They also want to find a policy that’s affordable for them.
Fidelity Life offers great affordable term life insurance options for young families. Applicants can even get life insurance with no medical exam. Here’s how term life insurance with Fidelity Life works and the reasons families should consider getting a policy.
Why do young families need life insurance?
Life insurance pays money to a beneficiary — a spouse or co-parent, for example — when the insured person dies. You choose a life insurance beneficiary when you buy coverage.
The money can support the family in your absence, such as paying the mortgage and funding your child’s education.
Here’s an example of how life insurance works: You buy a $1 million policy insuring your own life and name your spouse as a beneficiary. If you die while the insurance is in effect, your spouse receives the $1 million payout .
How Fidelity Life term life policies work
A term life policy gives a policyholder guaranteed protection for a specific term length. Fidelity Life offers 10,15, 20, and 30-year term lengths. Coverage amounts can range anywhere between $50,000 to $2,000,000. The cost of the premium is determined by factors such as age, gender, hobbies, smoker status, and overall health. A 30-year-old woman may get a 20-year $250,000 Fidelity Life term policy for as low as $18.71. Life insurance shoppers can customize their policy to a term length and coverage amount that’s enough to financially protect their family. After answering a few questions, Fidelity Life provides a quote to help life insurance shoppers find an affordable option.
Once shoppers have decided on a policy, they can apply for it online or with an agent. While term life insurance may require a medical exam, in some cases, young and healthy can have their medical exam waived. After an applicant is approved, they can start paying their premiums on a monthly or annual basis. With Fidelity Life, coverage may begin as quickly as the same day. Policyholders can customize their policy by adding a life insurance rider, such as a terminal illness rider or a child life insurance rider. Once the policy is about to end, it can be allowed to expire, be renewed, or a different life insurance product can be purchased.
Fidelity Life Term Life Benefits
The main benefit of a Fidelity Life’s Term Life policy is its affordability. A 35-year-old male can potentially get a 20-year $500,000 term life policy for around $37 a month. The premiums are generally lowest for those who are younger and healthier. As noted earlier, life insurance shoppers are able to customize a term life policy to the length and coverage amount that best suits their needs. Since the policy is not tied to an employer, policyholders won’t have to worry about losing their coverage if they change their job.
How much life insurance to buy & naming beneficiaries?
To figure out how much life insurance to buy, think about your family’s financial needs.
- Decide how many years of income you would like a life insurance policy to replace and multiply your annual income by that number.
- Add other financial obligations, such as debts and college costs for your children.
- Include the cost of services you provide that would have to be replaced.
- Consider savings and any other life insurance coverage you already have.
When you buy a policy, you name a beneficiary, such as your spouse, to receive the life insurance money. If you want to name a minor child as a beneficiary, you’ll want to consider establishing a trust to hold the funds for them.
A Guide to Life Insurance for Young Families
Fidelity Life offers a variety of policies, including no medical exam life insurance.Life insurance shoppers can discuss their options with a licensed agent or shop online for life insurance quotes. Shoppers simply need to answer a few questions before being quickly matched with a policy that suits their needs.