Why is Term Life Insurance the Best Coverage for Young Families

When you are young, it can be quite a stressful period on several fronts. You are trying to rise in your corporate career, and the process comes with its own share of learnings, setbacks, challenges and so on. At the same time, a sense of loneliness also creeps in, and people start looking for options to settle down. The natural tendency is to think about marriage, and starting your own family. If nothing else, it becomes the anchor point that keeps a person motivated, and working hard each day. 

However, being a young parent is probably one of the hardest challenges out there. For the first time in your life, you are thrust with the direct responsibility of at least two individuals, i.e., your spouse as well as your offspring, or children if they are in the multiple. While the emotional maturity that is required to handle the situation develops over time, there are also financial considerations that need to be taken care of. While you are a bachelor, or an early career professional, there are relatively lesser responsibilities. Family, as well as your society, gives you the leeway that is required to struggle in your own career, so that you may find your own path, and build your life accordingly. However, this period is bound to end eventually, and at a time close to your 30s, the responsibilities will only start increasing for the better. Consequently, subscribing to a term life insurance is the best decision for someone at this stage.  

Among the various options that are available, buying term insurance at this stage can be a valuable investment. This is in contrast to life or health insurance, or other asset related insurance policies, such as property insurance, or car insurance. Assuming that this is roughly the time around when one is 30 or so, term insurance is a good fit for the requirements at this stage. This is unlikely to be the time when the person has accumulated substantial savings to allow him to purchase his dream car, or the house that they wish to settle down in. That process is totally underway at this point in time, and it does not make sense to start worrying about that at this stage. At the same time, life can have its fair share of unpleasant surprises. Youth is not necessarily a guarantee of health, and young parents may develop health conditions owing to stress in their careers, anxiety, or other work related tensions. While it is expected that they are financially literate enough to manage the situation, by taking loans, or availing other options if required, the situation can turn bad if it results in the death of a parent. An infant child has to be taken good care of, and the upbringing that they get at this stage will determine the personality that they develop over the rest of their lives. In case a young parent faces a life-threatening situation or illness at this stage, there should be no laxity regarding the financial coverage for their spouse or for their junior dependents.

Some Factors Why Term Life Insurance is the Best Option that a Young Parent Should Look to Go for at This Stage:

1. As the head of your family, you are responsible not just for the upbringing of your children, but also for financial planning for them in case things go wrong. Life can be fragile, and situations may go wrong all of a sudden. 
2. A term insurance can be availed at a much lower premium, and if you do your research thoroughly, you can get a good plan that suits your family needs. Moreover, term insurance premiums tend to remain constant, so you do not need to worry about changing policy premiums. 
3. There are some strategic benefits that accrue to the subscriber if they start out early. If they start paying the premiums at a younger age, the premiums will be lower, since the company perceives the likelihood of death to be lower. Moreover, the young couple is also likely to be saving for other expenses, as well as other financial goals that they might have. Paying a lower premium will allow them to allocate savings towards other channels.
4. Since the candidate is young at this stage, it is unlikely that the term insurance application shall be rejected, or the company shall add riders to the policy based on the existing health conditions of the applicant. The policy may be trusted without doubt, as regarding its payout provisions.
5. While the responsibilities start piling up as one approaches or even crosses the landmark age of 30. There is still time to pursue things that one was always passionate about, or while one’s physical condition still permits. For instance, one may be passionate about travelling, or skiing, or always wanted to take the risk and start their own business. This is probably the last age when one has the time and mental ability to go for these options. In case one decides to pursue such a risk-laden activity, while having a family to think about, it makes sense to have the security of a term insurance.

Conclusion
Prioritizing a term life insurance can be one of the smartest decisions that you make, not just as a young adult, but also as an early career professional. This is a period of transition, when you are entering into full-fledged adult life, as well as making choices that will determine the lives of the people around you. While the earnings and savings might still be at a premature stage, having a good affordable cover in the form of a term insurance is a wise choice.