Term Insurance

Safeguard Your Future with Term Insurance

An unexpected death in the family can cause many problems for all. The breadwinner of the household can suddenly pass, leaving his/her spouse and children in financial disarray. What can be done to secure your family’s future, at least for a short period after your death? Look no further than term insurance or whole life insurance. Life insurance is coverage provided that replaces lost income due to a death in the family.

Life insurance such as term insurance can also be used to pay off debts and donate to organizations specified in a will. Life insurance is reserved for those with multiple responsibilities – a full-time job, a spouse, children, credit card bills to pay, and more. A recent college graduate might not want to take out life insurance until his/her life is established and a money “hold” is needed in case of death.

There are two primary kinds of life insurance – term insurance and cash value. Term life insurance is what the name implies – coverage given for a certain amount of time after death. Cash value (or permanent) insurance provides lifetime protection to families on a lump sum payment. When shopping for life insurance, it is important to take many factors into consideration. For starters, it is important to diversify and select from a wide range of providers offering term insurance and whole life insurance. Premiums vary in costs from the inexpensive to the near luxurious, so comparing price quotes from reputable insurance websites is a plus.

Another trick of the trade in selecting the right life insurance plan is to apply for the right amount of coverage. Oftentimes, overzealous individuals indulge with their coverage, paying premiums for excessive benefits they won’t really need. Also, keep your health habits up to par! It is widely known that the rates you pay on term insurance or whole life insurance depend on your overall health. Chronic smokers and obese patients will not enjoy the same rates as marathon runners with a spotless medical record. Also remember that term insurance and whole life insurance rates are cheaper as you’re younger. Starting early means cheaper premiums.

Life insurance policies like term insurance are one of the most versatile forms of coverage around. For term life insurance, individuals have the choice of selecting any period from 1 year to 30 years covered. A good barometer to pick the right term is your children’s age. If you want to protect your 3 year old daughter until she is able to support himself after college, it is wise to purchase a 20 year policy. This way, she is fully sheltered until her Merrill Lynch paycheck arrives at age 24. Remember, every family has a unique situation, and every situation calls for either term insurance or permanent cash value insurance.

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