Affordable Life Insurance Protection for Your Family
If you’re in need of life insurance to provide financial security for your family’s future, you may be considering the purchase of a term life policy, especially if you’re on a budget, like most of us, or you need short-term protection.
Term Insurance, which is also known as temporary life insurance, provides coverage lasting for a specific period of time, usually up to 30 years.
How a Term Life Insurance Policy Works
Term life plans provide temporary coverage that pays out a death benefit to your beneficiary if you (the insured person) die while your life policy is "In Force".
If you are alive when your policy expires, there is no payout of any death benefits, and your life insurance coverage ends.
The owner of the insurance policy agrees to pay premiums on a regular basis to the insurance company, and in return, the insurer agrees to pay out a death benefit if the insured person dies during the term of the policy, subject to all terms, conditions and exclusions stated in the life insurance contract.
How Long Does Term Life Insurance Last?
Term life policies may be available with a duration (term) of 10, 15, 20, 25 or 30 years.
The longer your policy term, the higher your annual cost of life insurance.
What Happens If I Outlive My Term Life Insurance Policy?
If you outlive the duration of your policy term, the coverage ends and there is no benefit paid out on your life insurance.
Who Needs Term Life Insurance?
Term coverage is for anyone who needs life insurance lasting for a period of thirty years, or less.
Permanent life insurance provides lifetime protection and usually costs up to 5-10 times more for the same amount of coverage compared to a term life policy.
If you’re on a budget, term life is definitely an option to consider.
What is Term Life Insurance Used For?
There are several things a term policy may help you protect or provide for, including:
Advantages of Term Life Insurance
Disadvantages of Term Life Insurance
NOTE: When your policy expires, you may not be in good health, and unable to qualify for another life insurance policy at that time.
Types of Term Life Insurance Policies
There are several different types of term policies available, including:
NOTE: Term life insurance is good to Pay Large Expenses that only last for a set length of time.
For Example: A mortgage, tuition loan, or small business loan are some large liabilities that most people do not have the money saved up to pay off, if they should die prematurely.
But they are expenses that will not last forever. Therefore, Term insurance is a low-cost way to cover those large debts for a set period of time, without breaking the bank.
Another thing Term insurance is good for is Raising a Family. You may want to purchase Term insurance with a policy term long enough to get your youngest child to at least age 23.
Term Life Insurance May Be a Good Idea For
Term Life Insurance May Not Be a Good Idea For
Should You Own a Term Life Insurance Policy?
This is an important consideration when choosing to purchase a life insurance policy that ensures the future financial security for your loved ones should you pass away.
So, what is your goal for your life insurance plan – what do you want it to accomplish and how long will you need coverage in order to accomplish your goal?
These are questions you need to answer to determine if a term life policy is right for you.
You would be the owner of the life insurance policy if you purchase the coverage and pay the premiums. You may insure your own life, or own a policy that insures the life of someone else.
The majority of people choose to purchase a policy that insures their own life.
However, there are many people who buy a life insurance policy to insure the life of their spouse, partner, child, parent or business partner.
You may own a life insurance policy that insures someone else’s life if you have an Insurable Interest in that person, meaning you either rely on the person for some form of financial support, or you should suffer some financial loss if the person you want to insure would pass away.
Who Owns a Term Life Insurance Policy?
Why Purchase a Term Life Insurance Policy?
Term Life Insurance Quotes
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