Term life insurance
Term life insurance: Is it the best choice? Not a simple question nor is there a simple answer but it is the simplest kind of insurance to understand. You pay the insurance company a certain amount of money – the premium – and if you die during the term period (the period of time that you are covered) then the life insurance company pays your beneficiaries the agreed upon insurance amount.
The good part: It’s inexpensive. It does the job while you have it, especially for families where income is tight and the loss of the breadwinners would be a financial disaster. The less advantageous: It runs out at the end of the term. That could be 10 year term, 15 year term, 20 year term life insurance and even 30 year term life insurance. Some term life insurance policies offer a guaranteed renewal which means you can continue the policy but at a new rate for your new, older age. This can be expensive and eventually as you get older – unaffordable.
So, the important point is to get life insurance – no matter the type – and get the most you can get so your loved ones are taken care of financially. Term life insurance is one way to get life insurance.
The other ways are whole life insurance or universal life insurance.
You can read about those by clicking the links and reading about those subjects in this blog.