If something were to happen to you within the set time period, or “term”, then your family would receive the pre-determined cash payout, or “death benefit”. Families typically set up term life insurance protection to pay for the following things:
Rent Or Mortgage
Your family will still need to maintain their mortgage repayments or rent repayments after your death. Homeowners will be liable for property taxes, insurance and maintenance expenses
Grocery Shopping
An obvious but not insignificant expense. The average household spends 6,500 USD a year on food alone.
Childrens Education Fees
From private tuition, to activities, to international schooling, to university fees, the total cost of education can be staggering
Ongoing healthcare costs
The average lifetime medical expenditure is $316,600- a third higher for females ($361,200) than males ($268,700). Nearly one-third of lifetime expenditures is incurred during middle age, and nearly half during the senior years.
Discretionary spending
Travel expenses. Birthdays. Christmas. Hobbies. The cost of maintaining a family, especially with children, cannot be underestimated.