WHAT IS TERM LIFE INSURANCE?

Life insurance is a way to help provide financial resilience for your loved ones in the event of your death. Remember, if you’re not there, your reliable income isn’t there either. The best candidates for life insurance are probably people who may not have large assets to leave a legacy to their family. If that sounds like you, term life insurance could be a useful tool.

This is a personal choice that depends on many factors. How many people depend on your income? Do you have a mortgage? Will you finance your child’s college education? Take stock of current and planned expenses, and then consider how many years of income replacement you might want to leave behind to accommodate those expenses. Think of it as providing your family with a financial lead in case they find themselves without you.

Term life insurance is just one of many coverage options, but it does have advantages. Underwriting, or the process of evaluating your eligibility for coverage, is typically faster with term life than with whole life. The entire process takes literally a few minutes. Granting also does not require a medical exam, which many others do. And when it comes to finding the best rates, term life insurance offers a typically more affordable alternative to whole life, which can sometimes cost hundreds of dollars a month.

Your policy ends when your term ends. So if you have a 10-year term life insurance policy, your coverage ends after 10 years. Simple truth? Some insurers offer what is known as a «renewable term,» which gives you the option to add time to your policy for an additional fee.

Unlike permanent life insurance, which lasts your entire life, term life insurance coverage ends when your term ends. This is one of the reasons why it is usually a more affordable option than life.