We hear from new and existing customers regularly who want to see term life insurance explained in a straightforward manner. What does it cover? How much does it cost? Who does it cover? Though term life is the simplest form of life insurance, there is a lot of misinformation out there. So let’s break this down plain and simple.
Term Life Insurance Explained
Available in 5, 10, 15, 20, 25, 30 and even 35 year terms, term life is the most affordable form of life insurance. Because policy holders can outlive their term policies, life insurance carriers take on less risk when issuing term coverage, equating to lower premiums. In addition, term policies are issued with fixed premiums allowing you to rest assured that your premiums will never change.
If you’re currently in the market for basic life insurance, not an investment or a permanent policy, term life insurance is probably your best bet.
Who to Cover
Your term life insurance should cover those who are dependent on you financially; aging parents, children, your spouse, etc. No matter who falls in this list, your term life insurance policy should adequately provide for each of them. Consider your future financial obligations to each, be sure your policy includes enough to coverer them; college tuition, retirement, long-term care, etc.
What to Cover
In addition to providing for those you love, your term life insurance should cover your outstanding debts, including: mortgages, car loans, credit cards and student loans. Be sure to purchase a term life insurance policy large enough to settle each.
There you have it, term life insurance explained quickly and simply. If you’re looking for low cost life insurance protection, a term policy will most likely meet your needs and your budget. Before making any final decisions, it’s best to speak with a licensed professional. Ask questions and determine which policy is best suited to your needs. At IntelliQuote we have a highly experienced team of licensed insurance agents prepared to take your call 5 days a week. With no obligation to buy, we encourage you to contact us today!
Want to see term life insurance explained further? Follow the IntelliQuote Life Insurance Blog for the insight and information you need – while you’re here, check out these recent posts: