What is term insurance?
- Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified “term” of years.
- If the insured dies during the time period specified in a term policy and the policy is active, a death benefit will be paid.
- Many term policies offer level premiums for the duration of the policy.
- Other term policies offer decreasing or increasing benefits over time as well as the option to convert from term to permanent insurance.
What is term insurance?
- In general, term life insurance is more appropriate for younger families that are looking for income replacement upon the early or unexpected death of an insured.
- It can help cover decreasing debts from a mortgage or credit cards.
- It can create funds necessary for children’s educational or lifestyle needs.
- It is much harder to qualify from a medical standpoint due to the larger benefit amounts.
In general though, most clients “outlive” their term, but it is the least expensive way on the front-end to cover larger (& often, temporary) amounts. As our clients approach retirement age, the value of having permanent coverage that is owned and cannot be taken away usually increases.
Have questions about what type of insurance is right for you? Let us help you navigate all of your available options and then you can tell us what feels best for your specific needs!