How Term Life Insurance Can Help You
August 11, 2022
Term life insurance is a different insurance policy that can give several options to you and your family over a certain period. You want your family to be financially secure, which means looking for a life insurance policy. It is essential to go through the different coverages and determine which works best for you and your family.
Term Life Insurance: What It Is and What It Does
For some people, a term policy is the best initial investment. Understanding the fundamentals of term coverage can help you make a choice.
Understanding Term Life Policy Coverage
A term life policy can help those who want to have coverage during a specific period of life. Likewise, it could include a situation where you hold a mortgage while your children are growing up and completing their education. Term life insurance policies extend coverage for a predetermined period, such as a 30-year term policy if you’re trying to cover a mortgage.
You decide which term is the right solution for your needs based on the options from your insurance carrier. Then, you choose if you want the opportunity to convert it to a whole-life policy.
Considering Term Life Insurance Coverage
If you’re considering a term life policy, you need to consider your coverage carefully to ensure that you get the right policy. For example:
Coverage Period
You will need to know the coverage period.
It is the term that you’ll choose. If you’re looking for something for peace of mind while your children grow up, a 20-year term policy might be enough. If you are getting ready to buy a house, you might want a 30-year term. Think about your life insurance goals before you choose.
Death Benefit Dollar Amount
Consider how much coverage you need. If you’re trying to cover your mortgage, you might want to consider the mortgage amount, any anticipated interest, and a few years of real estate taxes to help ease the burden on your family. If you have young children, think about whether you want to create a college fund for them in addition to their ongoing support in the event of your death.
Renewal Option
Do you want your policy to include an option for conversion to a whole-life policy?
Term life policies are significant for immediate needs when considering these factors and getting the right policy.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.