Young married people intending to have children in the near future could use this policy to take care of the
financial needs
of the family if a breadwinner dies. The needs of the family are not going to be any less because either husband or wife is not there...
The rent or mortgage still has to be paid, the amount spent on food will be about the same, everyone has to continue wearing clothing and the payment for the automobile still needs to be taken of...not to mention maintenance, gasoline etc...
It is going to cost money to
bury
the deceased spouse and parent. If they have a
will,
, and everyone should, it is going to cost money for probate and attorney's fees. If the estate is large enough there will be estate taxes to be paid. In addition there is always something that we forget about when planning for this eventuality that we would need to take care of.
The 25 year term life insurance policy can be set up to provide a
monthly income
instead of the usual lump sum. This makes sense if the amount of insurance is fairly large.