Affordable Life Insurance Protection for Your Family

What Is Term Life Insurance Good For?

If you’re in need of life insurance to provide financial security for your family’s future, you may be considering term insurance, especially if you’re on a budget, like most of us.

Term Life which is also known as temporary life insurance provides coverage lasting for a specific number of years, usually up to 30 years.

How a Term Life Insurance Policy Works

Term insurance plans provide temporary coverage which pays out a death benefit to your beneficiary if you should die while your life insurance policy is "In Force".

If you are alive when your policy expires, there is no payout of any benefits, and your insurance ends.

The owner of the 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.

Who Needs Term Life Insurance?

Basically, term coverage is for anyone who needs life insurance to last for a period of 30 years or less.

Permanent life insurance provides lifetime protection and costs up to 5-10 times more for the same amount of life insurance compared to term life.

So, if you are on a budget, term life is definitely an option to consider.

On a Budget
Need Maximum Amount of Life Insurance for Your Money
Need Coverage Lasting for 30 Years or Less

What is Term Life Insurance Used For?

There are several things a term policy may help you protect or provide for, including:

Pay Off Mortgage Loan
Replace Your Income
Maintain Family’s Lifestyle
Pay for Monthly Bills
Provide for Child’s College Education
Pay for Final Expense – Funeral and Burial Costs
Provide for Spouse’s Retirement
Pay Off Debt – Credit Cards and Personal Loans

Types of Term Life Insurance

There are several different types of term policies available, including:

Level Term – This is by far the most popular type of term policy available. It offers coverage with level premiums for the entire length of your policy, and the amount of insurance provided stays the same each year.
Decreasing Term – This type of plan has level premiums but the amount of coverage provided declines each year.
Annual Renewable – This type of plan provides one year coverage, and if you choose to renew your policy for an additional tear, the premium increases with each yearly renewal.
Return of Premium – This type of plan returns almost all of your premiums if you outlive the duration of your term life policy; however, premiums are higher for this type of policy.
No Exam Term Life – This type of plan allows applicants to apply for coverage online without taking a medical exam, and start their coverage the same day, if they qualify for coverage.

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.

How Much Term Life Insurance to Buy

If you’re not sure how much life insurance you really need, we recommend you use our term life insurance needs calculator to assist you in determining how much insurance coverage to buy.

The calculator asks you some basic questions about your finances and future goals, and instantly gives you an accurate estimate of much life insurance it will take to help you accomplish your goals.

Although some financial experts recommend that individuals purchase about 7-10 times their annual income in life insurance, this amount may or may not be right for your specific situation, depending on how much you already have saved and your monthly expenses.

Term Life Insurance Quotes

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