Term life insurance is a type of life insurance that provides a death benefit if the beneficiary dies during a specified term. In most cases, once the term expires, the term life insurance policy terminates with no benefit being paid. Term life policies have no cash value or savings component like universal or whole life insurance products, making this type of insurance very affordable. Term life insurance is generally purchased by those that are young and healthy and are looking for the most affordable way to protect their family financially.
Benefits of Term Life Insurance
There are many benefits to buying a term life policy for your life insurance needs. Below are some of the crucial things to know about term life policies:
- Term life insurance lasts for a defined “term” and pays a lump sum if you die during the term
- Terms usually last 10-30 years, and you can purchase add-ons, also known as riders, to customize your coverage to your needs
- If you outlive your policy, you do not receive a refund of premiums you’ve already paid.
- Term life insurance works for many people because it’s simple and affordable.
When should you consider term life?
Suppose your family or loved ones rely on you for financial stability or would become responsible for your debts when you die. In that case, you should consider buying term life insurance. Term life insurance is affordable life insurance that is easy to get, especially if you are young and healthy, and can help your loved ones remain financially stable should you die. When you approach a significant life milestone like marriage, kids, or buying a house, you should consider purchasing term life insurance. As you get older and have fewer dependents and debts, you may not need as much life insurance. If you have a unique financial situation or lifelong dependents, you may want to consider other permanent life insurance options.
Work with a term life insurance expert
When considering your options for life insurance, it is crucial to work with an expert. An agent’s role is to help you understand the many policy options and insurance carriers available to choose from and represent your interests throughout the process. I am here to help you select a term life policy that fits your life insurance needs and help you through the application and underwriting process. Agents are valuable advisors, not just when you are buying a new policy, but when things change in your life that could drive a need for a review of your plan like marriage, having children, and more. I am here to help if you have any questions about your policy, how it works, or when your beneficiary has to file a claim.