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Image of sleeping newborn baby wearing a knitted animal hat for Quotacy blog Reasons Young Families Choose Term Insurance.

Why Term Insurance Is Ideal for Young Families

By Jeanna Simonson | Expert reviewed by Natasha Cornelius, CLU
April 24, 2023
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.

Have you recently gotten married or had your first child and you’re looking for a cost-effective way to protect your loved ones’ future? If so, you may want to consider term life insurance. Unlike other types of life insurance, like whole life insurance, term offers comprehensive coverage at a lower cost, making it an attractive option for families on a budget.

We’ll explore why term insurance is a popular choice among young families, how it can help you achieve your financial goals, and what you need to know to choose the right coverage for your family’s needs.

Learn more about the differences between term and whole life insurance

Term Life Insurance Is Cost-Effective Coverage

Term insurance policies are designed to provide coverage for a set period of time, typically 10 to 40 years, rather than for the duration of your life. This makes it much more affordable than permanent coverage, which lasts your lifetime.

Monthly Quotes for a $250,000 Life Insurance Policy
Applicant Is a Healthy, Non-Smoking 30-Year-Old Male

10-Year Term Life Policy


20-Year Term Life Policy


30-Year Term Life Policy


40-Year Term Life Policy


Whole Life Policy


When you’re shopping for term insurance, there are a few things to keep in mind to ensure you’re getting the best value for your money.

  • Work with a broker who can comparison shop for you. Different carriers will offer the same amount of coverage at varying prices depending on their underwriting guidelines.
  • Consider buying the longest term length you can afford since you lock in pricing with term life insurance. The initial price you pay is fixed for the entire term, even if you develop health problems.
  • Buy a face amount you know you can afford long-term. A $100,000 policy is a million times better than nothing.

Term Life Insurance Is Protection for Your Loved Ones

Term insurance can provide your family with a financial safety net in case the unexpected happens. If you pass away during the coverage period, your beneficiaries will receive a lump-sum payment, also known as a death benefit.

Your loved ones can use the money however they wish to. Families commonly use the death benefit to cover expenses such as mortgage payments, childcare costs, and even your children’s education.

In addition, premature death can often mean a host of medical bills to follow. For example, if you’re unexpectedly diagnosed with late stage cancer, hospital bills can be immense. Life insurance can help ensure your family isn’t left with this burden.

You buy term life insurance hoping the policy is never actually used. It’s protection against the what-ifs in life.

What if you die unexpectedly? Life insurance won’t protect your loved ones from the emotional and physical pain of losing you, but it can protect them from feeling adverse financial impact.

See what you’d pay for life insurance

Comparison shop prices on custom coverage amounts from the nation’s top carriers with Quotacy.

Term Life Insurance Is Customizable

Every family has different lifestyles and financial situations.

Term life insurance can be customized by:

  • Length of coverage
  • Amount of coverage
  • Optional rider benefits

When deciding how long your term should last, you should consider what your financial obligations include. Think about your income, debts, support for your spouse and children and household expenses.

Choose a term length that covers the years when your family needs the most financial support. These are the years you’re paying off a mortgage, raising children, and saving for retirement.

Need help choosing a term length? Get more information on how long your life insurance should last.

Choosing the amount of coverage you need can be a little trickier. Consider any large financial obligations that would become someone else’s responsibility if you die. Also, consider the income you contribute to the family that would disappear if you die.

Life insurance riders are optional benefits you can add to your policy to enhance coverage. Some riders can be added to your policy at no charge, some require a small fee added on top of your base premium.

Common life insurance riders include:

  • Conversion Option: This rider allows you to convert your term policy into a permanent policy regardless of your health. A conversion option is typically free and automatically included on most term policies.
  • Accelerated Death Benefit Rider: If you’re diagnosed with a terminal illness, this rider allows you to use some of the death benefit while you’re still alive. You can use this money however you want. The amount you use will be deducted from your beneficiary’s payout. An ADB rider is typically free and automatically included on most policies.
  • Child Rider: This rider provides a small amount of life insurance coverage on any children you have under age 18. It can later on be converted into a permanent policy for that child without them having to go through any medical underwriting.
  • Waiver of Premium Rider: With this rider, if you become disabled for a long period of time, it waives your premium payments. You do not have to pay back the waived premiums.
  • Accidental Death Benefit Rider: With this rider, if you die as a result of an accident, your beneficiary receives an additional benefit on top of the base death benefit amount.

How to Choose the Right Coverage

Choosing the right amount of term life insurance coverage depends on your needs and budget. Follow these steps to help you determine the right coverage for you:

  1. Determine your needs: Consider the financial needs of your family or dependents in case of your untimely death. This might include mortgage payments, education costs, daily living expenses, and any other financial obligations.
  2. Estimate the coverage amount: Use our life insurance calculator to estimate the appropriate coverage amount. Factors that can impact the coverage amount include your age, health, income, assets, and debts. Alternatively, for personal recommendations, contact us Our non-commissioned agents would be happy to help guide you through a needs analysis.
  3. Choose the length of coverage: Term life insurance offers term lengths ranging from 10-40 years. Your premium is fixed for that entire period. When determining how long you need coverage for, consider the age of any children you have, your financial obligations and how long you expect them to last, and how many years away you are from retiring.
  4. Evaluate your budget: Assess your financial situation and determine how much you can afford in terms of premiums. Make sure to choose a policy that fits your budget while providing the necessary coverage.
  5. Compare policies and providers: Getting quotes from many different companies is the best way to find an affordable policy. Not all life insurance companies evaluate risk in the same way, so the cost of a life insurance policy specific to you can vary significantly in price depending on the insurer. As an independent broker, we can help you shop across carriers to find the best price.
  6. Review regularly: Life insurance isn’t a set-and-forget-it purchase. Review your policy periodically to ensure it’s in line with your needs since life circumstances can change. Events like marriage, divorce, having children, or significant changes in your financial situation are good times to reevaluate your coverage.

Not all term life insurance policies include a conversion option. The ability to convert your term policy into a permanent one can be life-saving for families if you’re suddenly diagnosed with a terminal illness.

When you’re young, you may not think about serious illnesses that could occur when you’re older. Imagine being diagnosed with late-stage cancer just a few years before your term policy is set to expire. Without a conversion option, you may leave your family with nothing but medical debt. Having a conversion option gives you further peace of mind.

Be sure to ask your agent if your term policy includes a conversion option and ask what the terms are. Some carriers have very generous conversion riders which allow you to convert at any time, some only allow you to convert during the first 5-10 years.

Learn more about buying life insurance as a young adult.

Get Free Term Life Insurance Quotes Instantly

Term life insurance is a cost-effective way to provide your family with the financial safety net they need in case of the unexpected. By customizing your policy and choosing the right coverage amount and length, you can ensure that your loved ones have the financial support they need when they need it most.

Through Quotacy, you can get term life insurance quotes instantly. See estimated pricing online without giving up your email or phone number.

When you’re ready to apply, the online application only takes a few minutes. You’re then assigned a dedicated agent who immediately goes to work for you ensuring you get the best price possible.

Ultimately, the peace of mind that comes from knowing your loved ones are protected is well worth it. So, don’t wait. Start exploring term life insurance options today and secure your family’s financial future.

Note: Life insurance quotes used in this article are accurate as of April 24, 2023. These are only estimates and your life insurance costs may be higher or lower.


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