The Basics of Term Life Insurance
When you are in the market for life insurance, you will soon find out that there are two main types of policies to choose from: term and whole life. A term policy will cover you temporarily, whereas a whole life policy is permanent coverage. If you’re looking for affordable and temporary cover, a term policy may be just right for you.
Why buy term life insurance?
Life insurance is designed to replace your income if you die so that your loved ones can pay for living costs and debts. For example, if you and your spouse own a home and you were to die tomorrow, he or she will be left to pay the mortgage on their own. If you had secured term life insurance, your spouse would receive money from the policy’s death benefit to manage. Because of the low cost, term life insurance is a popular choice for many individuals and families.
Term life insurance covers for you a certain amount of time, such as 5, 10, 30 years. If you were to die during the policy term, your beneficiaries would get the death benefit. However, if you outlive your policy, no benefit would be paid and you will have to purchase coverage again if you want to carry life insurance.
Term insurance is ideal for people who want coverage until their mortgage is paid off or until their kids turn 18. After then, you don’t have substantial financial obligations anymore, and there’s less of a need for life insurance because the likelihood of financial duress should you pass away is lower.
Additionally, term life insurance can be incredibly affordable, especially if you purchase it now. The younger and healthier you are, the cheaper your premiums will be.
Stumped on whether you need any form of life insurance? Check out these top reasons on why you need coverage.
Don’t hesitate to ask a trusted insurance expert questions to help you understand a little bit more about what term life insurance can offer you. For more information about getting the life insurance coverage you need, contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to get you covered today.