When do you need term life Insurance?
If others rely on you for some or all of their financial security, term life insurance can help protect their future.
Your spouse — Even if both of you work, if one dies, paying joint loans or credit card bills could impact your spouse’s financial future.
Your children— Whether you’re married or a single parent, if you have children you want to be sure that there are funds to pay living expenses for a time or even to help pay living expenses for a time or even to help pay for their college education.
Their Home and Lifestyle – You want your family to enjoy their neighborhood and the comfort of their own home for a long time, so you may want to take care of mortgage payments.
Family Members—A growing number of people care for other family members who can no longer care for themselves. Easing some of that financial burden can help.
You may have group life insurance through your employer. However it may not provide a death benefit large enough for your needs and it may not be portable if you switch jobs.
What is Term Life Insurance?
A term life insurance policy provides a sum of money when you die—a death benefit—to your beneficiary. There can be more than one beneficiary and you can change beneficiaries any time. Your beneficiaries can use the death benefit any way they’d like.
A policy benefit could help pay:
- Living expenses for a time
- Loans, credit card bills or funeral expenses
- Mortgage payments
- Child care costs
- Education expenses for a spouse or children
The cost for term life insurance could be less than you think. It will vary by factors such as your age, gender and health status as well as the amount of insurance you want and the length of time the level premium cost is guaranteed.
To get life insurance, you’ll have to answer questions on things like health and medical history and prescription drugs. You may have to provide a urine and blood sample. The company will evaluate your answers to determine how much you’ll pay for coverage—your premium.