As we all know, life insurance provides your beneficiary with a payment if you pass away when you are covered. But not everyone is familiar with the different kinds of life insurance. For instance, there is whole life insurance and term life insurance.
Term life insurance is more affordable than a whole insurance life and has no payout after the coverage expires and no cash value other than a death benefit. Here, we’ll let you know what term life insurance is and who should get one.
What Is Term Life Insurance?
A term life insurance protects you for an agreed period, generally between 10 and 30 years. You choose the length and coverage amount that works best for your needs, and you start making regular premium payments to keep the policy active until it expires. If you die while the policy is active, the insurance company pays out the death benefit to your chosen beneficiaries.
Who Needs Term Life Insurance?
This policy is a good fit for you if you’re a parent looking to cover your financial responsibilities for a set number of years. If you die during your coverage period, term life insurance makes it easier for your family to reach their financial goals. That could mean paying for major bills, like college tuition or becoming debt-free, and helping you cover preserve special moments and day-to-day expenses. You may need a term life insurance policy if:
- You have a young child or partner who depend on your income
- You’re nearing your retirement, and you need financial protection
- You have a mortgage and want to ensure your dependents can continue making payments
- You have student loans, debts, or other bills your family would need to cover
Keep in mind that your eligibility for term life insurance policy depends on a few factors such as your age, job, health and medical history, and many more.