Term life insurance is the most commonly purchased type of life insurance on the market. That means you have a lot of choices available. 30 year level term life insurance.
Because of this, it’s important to understand what is term life insurance before you make the decision to buy.
Fortunately, with the help of today’s article, you’ll have everything you need to decide if this type of life insurance is right for you.
Before we dive in to the specifics, let’s go over the basics first.
Here’s What Term Life Insurance Really Means
Don’t let the name intimidate you. Term life insurance is simply a type of life insurance that lasts for a specific period of time called a term.
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If the insured individual dies within that specific period of time, the life insurance carrier pays a death benefit to the insured’s beneficiaries.
Term life insurance is the least expensive way to purchase life insurance coverage.
Paying for Term Life Insurance
The majority of term policies sold are level term policies.
With level term life insurance, your policy premiums remain the same for the entire term length. So, if you’re paying $21 per month for a 30-year term policy, that $21 will never increase (or decrease) for the entire life of the policy.
Term life insurance is affordable and can be customized to fit most budgets. You have many options as to how long you want coverage for. Not everyone needs the same amount of life insurance coverage. The most common term lengths are 10, 15, 20, 25, and 30 years. The longer your coverage lasts, the higher your premiums will be.
How much term coverage you own (that’s the amount your beneficiaries would receive if you died) also affects your policy premiums. The more coverage you own, the higher your premiums.
Not everyone needs $1,000,000 in life insurance coverage. Buy what you can afford. Here at Quotacy we always say a $100,000 policy is a million times better than nothing.
Not sure how much life insurance you need? We’ve got your back.
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Just answer three easy questions and you’ll have a good estimate of how much it would really cost you to purchase term life insurance.