What is Term Insurance?

What is term insurance? Term Insurance is a relatively inexpensive way to purchase a death benefit for a set period of time.  Common term lengths are 10, 15, 20, and 30 years.  If you die within the term, the proceeds of the life insurance policy go to the beneficiary of your choice. Below are the benefits of term life insurance.

1. Provides income replacement

If you are the sole breadwinner of your family, your family depends on you for financial support. Your family would need to replace the income that is lost in the event of your death. Term insurance is a great way to insure your income and provide financial security for your loved ones. In addition, term life insurance is typically less expensive than other forms of life insurance.

2. Covers mortgages

A mortgage is for a set period of time. A good way to insure your mortgage is to get a term policy that lasts for the duration of your mortgage. If you were to die unexpectedly, your spouse would be able to keep the house by paying off the loan using the proceeds from the policy.

3.Covers debts

By having a term policy in place, you can protect your loved ones from the burden of paying off your debt in the event of your death. If you have student loans, credit card debts, auto loans, etc., a term policy can cover these costs.

4. Covers final expenses

Funeral costs and medical bills can be very expensive. Term insurance is a great way to cover these costs and alleviate the burden on your family.

5. Covers educational expenses for your children

College costs have increased dramatically over the years. In order to make sure your children’s educational costs are covered in the event of your death, you should get a term insurance policy. You can decide upon a term that will provide a death benefit that lasts until your children are able to make their own way in the world.

6. Insurance is a core component of any financial and estate plan

Term life insurance is a core component of a strong financial and estate plan. With a term life insurance policy, you can leave money to your children, spouse, or anyone that you care for. You can also change the beneficiary at any time or name multiple beneficiaries.

7. You can stop paying premiums at any time

If you buy a 30 year term policy you are not required to keep the policy for the entire 30 year term. There is no penalty for dropping a policy. Once you discontinue paying premiums the policy terminates and there is no death benefit coverage. However, if you do wish to keep the policy for the entire 30 year period, the premium amount is level and will never increase during the entire term length.

8. You can buy more than one policy

As your financial needs change you can buy another term life insurance policy. It is a good idea to review your coverage to maintain the proper amount life insurance.

9. Term insurance is relatively inexpensive

It is very important for young families that have not been able to accumulate a lot of savings to buy term insurance.  Often, a term life insurance policy costs less than it costs to buy a cup of coffee per day. Proceeds from the policy create an estate for the benefit of the surviving spouse and children.

At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.