Term Life Insurance

Term Life Insurance 101: What You Need To Know About Term Life Insurance

If you're the breadwinner of the family, your untimely death could be financial ruin for the entire household. The mortgage and college prospects could disappear with the loss of your income. Although planning for the worst-case scenario appears dire, it also provides you and your family with a cushion in tragic times. A term life insurance policy should be part of your basic financial planning. When you save for college, retirement or everyday investing, you need an insurance policy that covers all your assets in the event of your death.

Policies With Purpose

Death is one of the most stressful parts of life, especially when a spouse passes. You want your family to have the comfort to grieve for as long as they need to. Term life insurance allows them to concentrate on family, not on their immediate needs to fill the checking account with income. Without this financial stability, your family faces uncertain times. They may lose the house, vehicles or other assets. Term life insurance doesn't provide a small monthly payment, but actually releases a lump sum to your beneficiaries once you pass. They are free to distribute the money as necessary. It's up to you to decide on an amount that is ample enough to cover desired expenses. If you want the house to be paid off or your children's college to be fully covered, consider term life coverage today.

Term Benefits

The main benefit to term life insurance is low premiums. If you've priced whole or permanent life insurance, you may have been exasperated by the high prices. Some policies may have been more expensive than your monthly mortgage payment. Term life insurance is known for its low premiums, freeing your monthly income to invest in other areas. Stock some funds away in an emergency fund for household repairs or medical bills. Pay off student loans or credit cards. Even save up for that dream vacation.

• Canceling the policy allows you access to the cash value called the cash surrender value.
• You can borrow from the cash account and make payments to replenish the account.
• Making premium payments with your cash value will not impact that status of your policy.
• You can invest the money in your cash value for your retirement.