Term Life Insurance is insurance that pays a death benefit only if you die during that term. It is a popular choice among young and middle-aged adults who may have an eye on their budgets as they experience significant financial events such as buying a home, raising a family or building a business. During these years, term life insurance can provide the maximum amount of coverage for the lowest premiums, without the fluctuation of a premiums increase. Another reason for the popularity of this type of insurance is that premiums are set at the beginning of the guaranteed policy time period (term), which means the premiums will not increase over time. While the protection is provided for a defined number of years (typically 5 to 20 years), it expires without value if the insured lives beyond the policy period. This is a marked difference between term life insurance and whole life insurance.
Whether the proceeds from the policy that will replace income for your family, pay off your mortgage, or send your children to college, term life insurance policies offer peace of mind that your loved ones will be taken care of in your absence. Term policies may also offer the opportunity to convert into a whole life insurance, which would provide coverage to you with no expiration date. Term Life Insurance remains in force for as long as premiums are current, provided there are no misrepresentations on the application. As with any other insurance policy, the insurance coverage terminates if you discontinue your premium payments. Term life insurance policies typically have little or no medical questions and minimal paperwork. Call us today at (919) 875-8889 for a quote to handle your life insurance needs.
What kinds of expenses can a Term Life Insurance policy cover?
1. Your Income. Daily needs like utilities, food, medical care, and car loan payments.
2. A mortgage. Who would pay your home’s mortgage without your paycheck? To lose a house in the midst of dealing with a loved one’s death is an emotional disaster.
3. Student Loans. Many private lending institutions will not forgive debt in the form of education loans in the event of the death of a parent who may be a co-signor on the loan. In fact, it could also trigger repayment obligations for the loan.
4. A business. If you own or are partners in a business when you die, it is advantageous to have funding in place for the surviving partner to buy the deceased partner’s interest in the business. Finding the right person may take time and resources the business may not have without life insurance.
5. A retirement. Experts agree there should be a minimum of 10 times your annual pay in order to retire at age 65.
6. Final/Funeral expenses. With funeral expenses increasing every year, the average price of a funeral now exceeds more than $8,000. Without enough funds you may be forced to cut back on the service or ask friends and family for donations. A specific Final Expenses Life Insurance policy can cover these as well.
Life insurance needs vary from person to person. If you’re interested in learning which one is right for you, contact Gregg Suggs Insurance. We can tell you why life insurance might be a good option for you and help you find the right protection at the right price.
Not sure if Term Life Insurance is for you? Learn more about these other types of Life Insurance policies: