It goes without saying that you could never be replaced, but with life insurance, your loved ones wouldn’t be burdened with the financial pressure that would come with your loss. Here’s why: the proceeds of life insurance can be used to help preserve your beneficiaries’ standard of living and fulfill future goals, and generally come free from federal income tax. Term life.
HOW DOES TERM LIFE INSURANCE WORK?
Term life policies often start you at a lower premium for a set period of time. You choose the length of time you’d like to carry the policy, and at the end of the term, you typically have the option to easily renew or upgrade to a permanent policy.
In this way, purchasing term life when you’re young can lock in your access to affordable life insurance for the term period—even if your health status changes. You can convert your coverage to more rewarding permanent policies, like whole life insurance, possibly at a lower price than if you’d put off purchasing until you’re older.
Could a term policy be right for you?
Term can be the perfect solution for those balancing high expenses with a high need for protection, for example, when you’re starting a family. Ultimately, term life is a cost-conscious solution to get the most protection you can now, while still providing you with an opportunity to convert to a permanent policy later on.
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Finally, term insurance is a great option for people who need:
Coverage for a well-defined period of time
Business protection (in the event you’d lose a key employee or business partner)
Extra coverage on top of other, permanent life insurance
Considering term? Consider this.
Buying life insurance is an important decision. Here are a few important factors to keep in mind as you determine what plan is right for you: