What is Term Life Insurance?

Term life insurance offers a life insurance plan designed for people in situations that could change. Unlike permanent life insurance, term life insurance provides coverage for a defined period of time, after which you can change life insurance policies or renew your existing one.

Term life insurance plans offer life insurance coverage over a defined period of time. Policies can range from 10, 20, 25, or 30 years in duration, and your premium is guaranteed to stay the same throughout your term period

If you pass away during the term, a lump-sum, tax-free payment will be paid to your loved ones or beneficiaries. This payment may be used as income replacement to cover expenses, pay outstanding debts, cover the cost of your child’s education, or help maintain their lifestyle. You can rest assured that your spouse and children will be well taken care of through your term life insurance policy.

Upon completion of your term, you may decide to renew or select a new term length. Many term life insurance policies also offer the option to convert to permanent life insurance coverage should your needs change.

Is Term Life Insurance Right for Me?

Term life insurance plans are ideal for those looking for temporary coverage, perhaps while your children are young and dependent upon your income, or while debts such as your mortgage are at their highest. By securing a term life insurance plan, you gain peace of mind that if you were to pass away unexpectedly, your loved ones would not be financially impacted. Other reasons you may choose Term Life Insurance could include:

• You’re looking for an affordable life insurance plan to fit within your budget
• You’d like convenient, quick coverage without the hassle of medical exams or needles
• You have some health issues or you’re hard to insure

Regardless of your reasons for selecting Term Life Insurance Coverage, this investment can serve as an important part of your financial plan, giving you control over your expenses, outstanding debts, and the financial security of your loved ones.

Everyone’s financial situation is a little bit different. Whether term life insurance is a good investment for you will depend on your individual finances and the length of time you need coverage. Term life insurance is an excellent option while the kids are still living at home or if you have debt because the premiums are much lower than those of a permanent life insurance policy. All payments are contributed toward the death benefit, with no cash value and therefore no investment. As a result, the smaller premiums pay for a large death benefit, making term life insurance an excellent option for individuals and families.

How Much Term Life Insurance Coverage Do I Need?

In short, the appropriate amount of life insurance should cover bills, lifestyle expenses and any outstanding debts, ensuring that your dependents are not financially impacted in the event of your untimely passing. As a rule of thumb, many suggest securing term insurance coverage that is roughly 10-12 times your current annual income.

For a more accurate estimate, use our Life Insurance Calculator to determine the appropriate amount of term life insurance coverage, based on the immediate cash needs of your loved ones, your income, and any existing assets or insurance coverage.