Term life insurance is a policy that pays a death benefit to beneficiaries if the policyholder passes away within a certain period of time or before a certain age is reached. For example, your coverage can be for a fixed time period, or until you reach the age of 85.
Term Insurance is an easy-to-understand and affordable way to keep your family’s financial situation secure if anything ever happens to you. When you buy a Term Life Insurance policy, you need to decide on three things. You need to decide on the company you prefer, your preferred length of term, and the amount of coverage. You will be covered for the term by paying the premium.
Your Family Can Use The Funds For:
• Pay any outstanding debts
• Get rid of any guarantees
• Supplement lost income
• Children’s education
• Help with partner’s retirement plan
Some things you should know before buying Term Life Insurance
Amount of Coverage: Reviewing your financial goals and figuring out the amount of coverage you need, will help guide you to the right policy. Although working with an Insurance Advisor is recommended, you can add up debts, tuition, and mortgage, subtract what you would pay, and the difference would be the estimated needed coverage.
Length of Term: You can choose a fixed term, allowing you to easily budget, and save more of, your money. You can choose anywhere from 10 to 30 years of coverage or you can pick a term of coverage as per your need which will cover you for the selected term
Look Around: You will need to search for the right insurance for you. As with most life insurance policies, your health and other factors play a big role in coverage. Rates will also vary from company to company. An insurance agent can help you find what you need.
Being Healthy: Although most insurance applications take weeks, and you have to fill out documents, have an exam, and give information if you are healthy, the process can move along quicker. If you don’t have any health conditions, you may be able to have an agent use online applications to approve you quicker than usual. Even if you do have to wait several weeks, you can still get temporary coverage.
Term Life Insurance is usually more affordable than other plans because it only covers a set term and doesn’t build up cash value. For those who may be struggling financially, Term Life Insurance can give you insurance security without stressing your bank account.