Term Life Insurance

Posted on: February 6th, 2019

Protect Your Family and Your Finances

Have you been putting off getting life insurance? Perhaps you recognize the important role life insurance can play in protecting the people you love, but have struggled to find a policy that fits your finances. Fortunately, term life insurance offers a cost-effective solution. That’s especially important if you’re already struggling with student loans, credit card debt, rent or mortgage payments, child care expenses or other budget busters.

By allowing you to choose your coverage amount and the length of the policy, term life insurance offers you protection at a lower cost compared to other forms of life insurance.

What’s the Difference?

Common types of life insurance include term life, whole life, universal life and variable life. All of these policies pay a benefit to the beneficiary in the event of the insured person’s death. But with whole life, universal life and variable life insurance — or permanent insurance — the premiums go into an investment fund. Over time, this money grows and can be used or borrowed. With term life insurance, the premiums generally start out at a much lower cost than with permanent insurance, and only death benefit protection is provided, not any cash or loan value.

Choosing a life insurance policy that’s right for you depends on your individual needs. Because of the initial low cost of term life insurance, it might be a good choice if you’re a young person with limited income and substantial financial obligations. If you’re looking for long-term coverage or your health is declining, however, permanent insurance may be more appropriate.

Assess Your Coverage Needs

We understand how important it is to protect your financial future and that of your loved ones. Please contact your Client Advisor for more information.

3 Reasons to Consider Term Life Insurance

Term life insurance may be a good place to start if you’re buying life insurance for the first time. Here are some reasons why term life insurance can be a smart choice:

  1. Affordable premiums. Because it’s temporary, term life insurance premiums are significantly less expensive compared to permanent life insurance. The money you save on premiums could be used to build your financial security in other ways, such as saving for retirement, creating an emergency fund or paying down debt.
  2. You choose the term. You can choose a term that matches your needs depending on how long you need coverage (e.g., five, 10, 20 or 30 years). Parents with young children might choose a 25-year term life insurance policy to cover the years when their children will be growing up and going through college.
  3. Option to convert. Most term life insurance policies can be converted to permanent life insurance if your needs change. Having the option to switch to permanent insurance may be helpful later on if you’re looking to extend coverage.

 

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