Your 2-Minute Guide to Term Life Insurance
Reader’s Question:
What is term life insurance and why should I buy it?
Jules
Hammond, IN
Temporary life insurance or “Term life” is a type of life insurance policy that provides significant amounts of death benefits or protection for a relatively affordable price. This is one of the most popular types of life insurance coverage these days. Below are some more details about term life insurance definition and how this kind of policy works:
How does Term Life Insurance Work?
With term life insurance you can choose policies that last anywhere from a year, 5, 10, 15, 20, and up to 30-year terms. You are not obligated to keep the policy forever but most companies do offer renewable guarantees meaning you can renew your term life without the need to prove your insurability (e.g. take a medical or physical exam all over again). There are no fancy investment options to learn. You just pay for good old, no non-sense life insurance coverage.
Who Should Buy Term Life Insurance?
So why should you buy a term life insurance policy? If you are expecting a child, is already raising a family, sending kids to college, or paying-off mortgage, a term life insurance policy can give you financial security that your beneficiaries are covered at this particular time of life. Even if you’re no longer there, the kids can still go to college and the house wouldn’t have to be foreclosed due to non-payment of mortgage. A term life insurance can be a great financial asset to a lot of people, especially in uncertain economic times like these.
Loading ...