Term life insurance is an affordable option when it comes to life insurance that will help you cover financial expenses of the insured individual when they pass away.
What you can expect with term life insurance
Term life insurance is a cost-effective solution to keep you family's budget protected while offering peace of mind knowing your family will be free from financial stress. This type of life insurance provides coverage for a set period of time - you can typically choose from 10, 20 or 30 year.
Term life compared to whole life insurance
When compared with whole life insurance, term life is the most cost-effective solution with lower monthly rates. Here's a quick breakdown of differences:
Term life:
- Temporary coverage
- Cost-effective
- Fixed premiums for the term
Whole life:
- Lifetime coverage
- Provides a cash benefits
- Fixed premiums for life
Which is the best for you depends on your financial goals, budget and coverage needs. Term life is best for temporary coverage during key financial planning years like for college expenses, mortgage and income replacement for dependents. Whole life is best suited for those looking for lifelong coverage that can also be used for estate planning, wealth transfer or having a financial safely net for long-term needs.
How term life works
One benefits of term life is the simplicity you'll find while shopping for the right plan. Here's what you'll see.
Select a term: Choose a term length based on your financial obligations and the periods you want to be covered.
Determine coverage: Calculate how much coverage you need, considering factors like income replacement, debts, and future expenses.
Apply for a policy: Provide basic health and lifestyle information to get a quote. Depending on the insurer, a medical exam may be required.
Pay premiums: Lock in a fixed premium for the term length. The policy remains active as long as premiums are paid.
Received coverage: If the policyholder passes away during the term, the beneficiaries receive the death benefit.