A term life insurance pays a benefit to your survivors in the event of your death. The coverage is applicable for a specified period, from ten to thirty years. Because the terms are limited, a policy of this type is less expensive than a regular life insurance policy. In addition, your premium never goes up, regardless of your age or medical condition. Because there is a fixed term on the policy, it is considered less risky coverage than regular life insurance, hence the lower premiums.
Why Should You Get A Policy?
When you have life insurance, you are providing for your family after your death. In addition to burial and funeral costs, you may have incurred medical bills as a result of an illness or hospital stay prior to your death. The loss of your income can be devastating enough for your spouse and children; having additional bills to pay in relation to your death could cause serious financial stress for your loved ones. With a term life insurance policy, the expenses related to your death can be paid, and your loved ones can pay other expenses as well. Your spouse may be able to pay off your mortgage with the benefits or set aside money for your children’s college tuition. The benefits will also help with household expenses that may otherwise be difficult for your spouse to handle alone.
How Does It Work?
When you buy a term life insurance policy, you select the payoff amount and the terms. The premium will depend on the duration of the policy, your age, and your health. The policy terms are limited for a period between ten and thirty years. If you die during the period covered by your policy, then a lump sum will be paid to your beneficiary.
At the end of the term, you have the option of getting another term policy or converting your coverage over to a regular policy. Since the term is limited, the premiums for your coverage do not increase at any time. Although you can end your coverage at any time, your insurer cannot terminate your policy, regardless of changes in your health. Most insurers offer the option of changing over to a regular policy at certain times over the course of your coverage, such as annually.
Get a Quote And Choose Your Coverage
In as few as ten minutes, you can get quotes online from multiple carriers of term life insurance. You’ll just have to answer a few basic questions regarding your age and medical history. From your online quotes, you can narrow down your choices and find an insurer. If you already have an insurance agent, check with your agent to see if the insurer also offers term life insurance. Many insurers offer discounts for having multiple policies.
Once you’ve selected a carrier, an agent can help you determine the correct amount of coverage for you. Most carriers recommend getting coverage that is equal to a minimum of seven times your annual income. This will cover your outstanding expenses and help supplement the household income for several years. If you can afford it, then you can buy much more. This type of policy offers peace of mind that your loved ones will be taken care of after your death.
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