Have you heard about “Term Life Insurance” but don’t really know what it means?
We get it! With all the insurance policies available out there, it can be easy to mix everything up. In this article, we will discuss what term life insurance is as well as its benefits and downsides. Read more to find out.
What is Term Life Insurance?
Term life insurance is a type of life insurance policy that you buy for a certain number of years. Hence, the name “Term Life Insurance.” Depending on what you choose, a typical term can include 10, 20 or 30 years.
However, this type of insurance policy is not something that you purchase for your own use. Instead, you purchase a term life insurance for your family or your beneficiaries. They will be the ones who benefit financially from this type of insurance policy if you pass away.
This type of insurance protects your loved ones financially after you pass away. It provides you with the confidence that, even after you’re gone, your family will be financially secure.
Big Benefit of Term Life Insurance – Premiums
One of the benefits of this type of insurance policy is that the monthly premium remains the same. It doesn’t go up even as you age.
This assumes that you keep paying your premium every month/year, of course. Once you stop paying your monthly premiums, then your policy lapses and your coverage will disappear.
Who Is Term Life Insurance For?
Term life insurance is for those who have children or a spouse who depend on them financially. It could also be for you if you have family members, say a sibling or parent, who depends on the money you earn.
Think of this insurance policy as a replacement for income. Should something happen to you, your beneficiaries or dependents will be taken care of. The check they will receive from the insurance company will make up for the income you can no longer earn.
If you do not have dependents, then you should consider getting a different type of insurance.
It’s For Your Peace of Mind
Term life insurance is a great policy that will give you peace of mind during tough times. It offers your family and dependents financial stability and security in the event of your untimely death.
This insurance policy is simple enough: if you die while you’re still paying your premiums, then your family will get a death benefit. Having this type of insurance policy is important if you have people who depend on you financially.