Life Insurance
As a husband and father of three, I can't imagine leaving behind my wife and kids without any financial support. Large financial obligations such as a 1st and 2nd mortgage, car payment, and credit card payments can financially sink a family when a wage earner passes unexpectedly. Life insurance is affordable when you plan ahead, this means secure a policy while you're still healthy and insurable.
Term life insurance provides coverage for the specified term period, ranging from 5 to 35 years. It pays the death benefit in the event you die during the covered term.
Other types of coverage, such as variable life, universal life, and whole life, have a cash surrender value because a portion of each premium payment you make is invested in a separate account. That money can accrue over time, depending upon what the money is being invested in. You have the option of investing the money in fixed income or variable investment funds.
You can also take a loan against the cash value of your policy. The interest rates for these types of loans are typically small, and you can pay back the loan in a lump sum or installments. If you default on the loan, the insurance company will pay off the loan using the accumulated cash value that you borrowed against.