Life changes can prompt a reevaluation of our financial priorities. Whether you're buying a home, welcoming a new family member, or switching jobs, understanding term life insurance can be a crucial step in securing your financial future.
What is Term Life Insurance?
Term life insurance is a straightforward and affordable option, allowing you to select a term length and coverage amount. If you pass away during the term, your beneficiaries receive a tax-free payout.
How Can the Payout Be Used?
The payout from a term life policy can cover various expenses such as mortgage payments, funeral costs, living expenses, or college tuition.
Types of Term Life Policies
- Level Term: Both premiums and death benefits remain constant throughout the policy.
- Yearly Renewable Term: Premiums increase with age, though coverage renews annually.
- Decreasing Term: Suited for mortgages; the death benefit decreases over time while premiums stay level.
Additional Features
- Return-of-Premium Rider: Offers a refund of premiums if the policyholder outlives the term, yet can be more expensive.
- Convertible Term: Allows you to switch to permanent coverage later, often without a medical exam.
Why Consider Term Life Insurance Now?
With 102 million U.S. adults having inadequate life insurance, and misconceptions about cost prevalent, securing coverage early can lock in more affordable rates.
When to Reassess Your Coverage
It may be time to layer additional coverage if you've taken on new debt, had children, lost employer coverage, or experienced an income change. Life evolves, and so should your insurance.
Explore term life insurance as a step towards protecting your loved ones, and consider speaking with an insurance advisor to tailor coverage to your needs.