Term Life Insurance

Life insurance has many uses.  It can be a tool for protecting a family.  It also is a useful tool to ensure the continuity of a business. When it comes to life insurance ask yourself these (3) questions:

  • Why am I buying the insurance?
  • What purpose should life insurance serve?
  • How did I determine the amount of coverage I need?

Just answering these (3) questions, it will help you select the best type of insurance for your specific needs.  For many, term life insurance provides a great solution.

How Does Term Life Insurance Work?

The most basic form of life insurance is term insurance.  It insures people against loss of life, by offering a cash benefit if the individual dies during the term.  Typically, the annual premium and death benefit remains the same for the duration of the policy. Premiums are dependent on the policyholder’s age, gender, medical history, and current health conditions. In most cases, a physical exam is required along with an application and details about your family history and health status.  However, depending on the amount you’re applying for, you might not need an in-person medical.

Why Buy Term Life Insurance?

Many people purchase term life insurance for family protection.  Assuming you’re in good health, term life insurance is a very affordable method to purchase more insurance very inexpensively and is ideal for replacing a salary while you have dependents. Term insurance is suitable when:

  • the need for protection is purely temporary;
  • the need for protection is permanent, but cannot afford the premiums for permanent insurance;
  • it is used as a supplement to permanent life insurance

Family Protection

The most common type of life insurance for people between 25-55 is term insurance.  Since many young adults have less disposable income, purchasing term insurance is the most affordable solution.  The most popular duration for a term policy is 20 years, but some opt for 15-year or 30-year policies depending on their personal preference. When you purchase this type of policy, you’re guaranteeing that the provider will pay out the benefits if you pass away within the term period.  If the term expires and you’re still alive, you can choose to renew, convert, or terminate the policy.  By “converting” to whole life insurance, the policy can be extended.

How Much Term Life Insurance Do I Need?

There is no right answer when it comes to “how much” coverage someone would need to purchase.  Each individual should evaluate their own expenses and liabilities should you no longer be able to provide for the short and long term.  An experienced professional can ask the right questions to accomplish your goals with life insurance. It’s never too early to purchase life insurance.  In most cases, one’s individual health does not improve over time.  In fact, we tend to develop medical issues as we get older.  Therefore, if you want to save money and lock in rates now, you should look into some term insurance.

Contact me to learn more term life insurance and see what fits your personal needs. Please note that additions, changes to coverage, or the first report of a claim cannot be made via email. You must speak directly with an Account Executive or Claims Department representative.