Newlyweds and young parents have a lot to protect—especially the financial stability of their loved ones should the income earner die prematurely. There are many economic demands on young families, but one that should definitely be in the budget is life insurance.
Term life is the most recommended product for young people with dependents. This is because it is typically quite affordable, easy to get if you are in relatively good health, and very high in payout benefits compared to the premium. Buyers often intend the coverage to pay for mortgage or rent payments and other basic needs for their heirs.
But term life insurance may have other benefits that make long-term financial sense. They often can include riders (additions to the policy) to cover disabilities, long-term care, and a transition to a whole life policy once the term of the original policy ends.
