Term Life Insurance
Buying life insurance of any kind is often confusing. In order to compare policies by price, you have to be sure that each policy carries the same benefits for the same amount, and figure in a dozen different factors. It’s enough to set your head spinning in most cases.
Term life insurance coverage is the easiest for comparison shopping. It simply covers you in the event that you die before the end of the term for which you are covered.
How Term Life Insurance Works
Term life insurance will pay out a specified lump sum to the person that you name as beneficiary in the event that you die before the policy expires. T
Other than deciding if you want guaranteed or renewable premiums, there’s no need to worry about other bells and whistles, so comparing policies is a simple matter of comparing premiums among the various life insurance providers.
How Much Coverage Do You Need?
The biggest decision you’ll face is how much life coverage you need. The general rule of thumb is that, at a bare minimum, you should provide at least enough to pay off your outstanding debts and cover your funeral expenses.
If you would provide additional benefits to your family, things like covering the remainder on your mortgage and other debts can provide a cushion to help your family get back on their feet financially after your death.
If you have young children, you should also consider the cost of their future education.
What Factors Are Considered in Assigning a Premium?
There are a number of factors that may affect how much you pay for your policy aside from the amount of the death benefit you choose. These include your age, your gender, the state of your health and any pre-existing conditions, and whether or not you smoke. Smokers can expect to pay higher premiums than those who don’t use tobacco products.
Why Should You Buy Life Insurance?
If you are the major breadwinner or a major contributor to family income, you should be insured. No one likes to imagine what will happen if they die, but it makes sound financial sense. Potentially, your life insurance benefit can mean the difference between your family keeping the home in which you live and losing it to debt if you are no longer able to provide for them. In general, if you are carrying a mortgage, you should carry at least enough insurance to cover the mortgage for a minimum of two years. This will provide your family the money to make the payments while they figure out what to do with the house - keep it or sell it.
Purchasing life insurance of any kind should not be difficult. Contact us for Free Quote and Consultation.