If you have dependents who rely on your income for survival, life insurance is a need. Getty Pictures
Life insurance provides a financial safety net for your loved ones. It will offer them with a lump sum payment that they can use to meet expenditures, pay off debts, or replace your future income if you die away unexpectedly.
But what kind of life insurance is best for your family? Term life insurance is a common option that provides coverage for a defined length of time, typically between 10 and 30 years.
Term life insurance policies can be wise investments for many people, but there are solid indicators to help you determine if this is the case for you.
If you’re in the market for term life insurance, your first step should be to obtain a free quote so you know precisely what to expect.
4 indications you require term life insurance
Do you believe you would benefit from purchasing term life insurance? Check to see if any of these symptoms seem familiar.
You have a limited budget.
If you’re wanting to reduce your monthly payments, term life insurance is the ideal option. Since these plans are short-term, they are typically more reasonable than whole life insurance, which provides coverage for the remainder of your life (for some people, that could be many decades).
Depending on age and gender, the average cost of a 10-year, $250,000 term life insurance policy ranges from $12 to $74 per month, according to data from Progressive and Fidelity Life Association. Typically, men and older policyholders have the highest premiums. Keep in mind, however, that these are merely averages. Your specific premium will depend on a variety of criteria, including your age, health, and the period of term life insurance you select.
Begin by obtaining a free pricing estimate so you are aware of the precise cost.
You simply need it for a brief period of time.
Term life insurance policies are intended for a brief duration. For example, if you want to ensure that your family will be able to pay off your mortgage in the event of your death, you may get a policy equal to the number of years left on your mortgage. Many individuals additionally purchase enough term life insurance coverage to endure until their children reach the age of 18 (and are no longer living at home) or graduate from college.
No investment or saving component is required.
Some types of life insurance provide a cash value that accumulates over time, similar to a savings account. Other types permit you to invest your policy’s cash value in index funds and other long-term wealth-building assets.
Term life insurance does not provide any of these benefits (another reason it tends to be less expensive than other policies), so if you do not require assistance with investments or savings, it may be a decent alternative to consider.
You are the major provider for your family.
If you have dependents who rely on your income for survival, life insurance is a need. A term life policy can assure your loved ones have coverage during the remainder of your working years — or at least until you plan to retire.
Uncertain about how much term life insurance you need? Start by requesting a free price estimate to determine your eligibility.
Numerous alternatives to select from
Term life insurance is one of the numerous types of life insurance policies available, but keep in mind that its coverage is restricted. If you desire permanent protection, full life insurance is likely your best option. And if you choose to use your policy as an investment vehicle, a variable life insurance policy may be more suitable.
Consult an independent insurance agent if you are still uncertain about the type of policy you should purchase with your hard-earned cash. They can explain the advantages and disadvantages of each type and help you shop around for the best term life insurance provider. Use the following chart to begin comparing providers and policies.
»4 indications you require term life insurance«