Term Life Insurance - Affordable Policy
Term life insurance provides temporary coverage for the policyholder, usually between 10 and 30 years. It’s more affordable and straightforward than whole life insurance, but it has an expiration date.
This policy could help pay off a mortgage or fund your child’s college education. The Think Wealth Group can help you secure a term life policy that can provide for your family’s loss of income if you pass away unexpectedly.
What Is Term Life Insurance?
With term life insurance, the policyholder pays regular premiums for a decided period of time. If they pass away while the policy is active, their beneficiary gets a death benefit payout.
The key definition of term life is the term, or how long the policy is in force. Term life policies expire after a fixed number of years, which works great for anybody looking to build wealth over time or won’t need the financial security blanket life insurance provides later on.
Term life insurance is relatively inexpensive — there are no additional fees or maintenance.
Term Life Insurance Features
Types of Term Insurance
Most term insurance policies sold to individuals are level premium term policies. This means that your premium will be the same for a certain period, which may be the entire term or just a part.
Less common types of term insurance include annual renewable term and decreasing term life coverage. But these types are usually not best suited for families who want the most protection.
Pros and Cons of Term Life Insurance
Term life comes with its own set of advantages and disadvantages. For most people, the positives outweigh the negatives.
Term Life vs. Whole Life Insurance
Term life and whole life insurance each have their benefits and drawbacks, and the right choice for you will depend on your circumstances and budget. It’s not a one-size-fits-all scenario, but we can help you figure out which type is best for you.
The majority of people shopping for life insurance need affordable coverage for a certain period, which is what you get with term life. If you’re on a budget and want to leave behind a death benefit to cover living expenses, term life is right for you.
On the other hand, if you’re protecting an inheritance that will be prone to an estate tax, want to build cash value, or have long-term dependents, whole life is right for you.
The Bottom Line
If you have a young, growing family and are looking for a simple life insurance option, go with term life insurance. An advisor at The Think Wealth Group can help you choose the company and term length that fits your situation. Contact us today!