Term Life Insurance Protects Your Family
Term LIfe Insurance
When it comes to protecting your home and family, term life insurance is a great choice. It’s one thing you can do to make an unexpected passing just a little bit easier.
You may be reading this because you just saw one of those life insurance commercials or because someone close to you or your family passed away without life insurance and you saw firsthand how financially difficult it has been for them.
What Is Term Life Insurance?
Whatever the reason, once you decide to think about buying life insurance, all the terms and options can become confusing. What’s the difference between term, whole, and universal life insurance? Which one will cost you least long term? Is cheap term life insurance the best for you?
Types of Life Insurance
There are two basic types of life insurance. Term life insurance functions a lot like other insurances. You pay the regularly scheduled premium, and if you die during the time you are insured, your beneficiary is paid the amount of the policy.
A good definition of term life insurance is life insurance that protects you for a certain rate of payments over a limited period, after that time period expires, you would have to buy additional insurance. Term life is the cheapest form of life insurance to buy.
The other type of life insurance is permanent life insurance. This is more like an investment or limited access savings account. Permanent insurance is in effect (as long as the premiums are kept up) for as long as the insured lives or he turns the policy in for the cash value it has accumulated.
There are several different types of permanent life insurance policies including whole life, universal life, and limited pay. Since these policies accrue a real cash value, the premiums are more expensive than for term life insurance policies.
Things to Consider with a Term Insurance Life Policy
When you are looking at term life insurance policies, you should compare them using the following three factors: How much will it pay (experts recommend that you get about 10 times your annual salary)?
How much will it cost? How long is it good for? Many policies are level term policies which have a fixed premium and benefit amount for a stated length of time that can be anywhere from 5 to 35 years.
Pay attention to renewal or conversion (to a permanent life policy) options or lack of them since these will affect your insurance options when the term is up.
Level term policies are good for people who are looking for no frills life insurance that won’t cost too much. There are also annual renewable policies that run for one year at a time, but with a guaranteed renewal option (i.e. some continuation of insurance, but not necessarily equal premiums or coverage). These would be good for anyone who needs short-term coverage.
While you are investing in your family’s protection, you may also want to think about getting a video surveillance camera to be your eyes while you are sleeping or away.
Term Life Insurance Protects Your Family
While you are thinking about protecting your family with term life, do you have enough commercial insurance that would also protect your business and your family?
