What to consider when you are thinking about purchasing term life insurance.
When you are in the market for life insurance, you will soon find out that there are two main types of coverage to choose from: whole and term. Whole life insurance is designed to cover you for your entire life, while term is coverage that is set for a certain amount of time. To help you understand the basics of term life insurance, read on.
What is term life insurance?
Term life insurance is designated for a certain time period or to a certain age. Term policies generally last for 5, 10, 15, 20, or 30 years. In exchange for an annual or monthly premium, the insurer agrees to pay the amount of the policy (such as $100,000) if the insured dies while the policy is in force. If the insured outlives the policy, then the policy will not pay out and the individual will have to take out a new policy in order to hold life insurance coverage.
How does it work?
In simple terms, when you pass and no longer are able to look after your loved ones, your term policy will kick in. The policy will release cash to your beneficiaries. Here, your family can use this money to cover funeral expenses, remaining debt, everyday living expenses, and even save for future financial goals as planned. Such a policy can help your spouse have enough funds to retire on time or can help to send your child to college.
Because you can pick how long you want your term policy to last, you are in control of how you help your family. For example, if you have a 30-year mortgage, you may choose to take out a term policy for 30 years. If you have children, you may choose to take out coverage until they are at least 18. There are many ways people can benefit from term life insurance.
Term life insurance can be daunting to secure. Luckily, at Young Insurance, we work with you to ensure that you’re protected. Our life insurance experts can help you find and secure quality coverage. Serving Burbank and neighboring cities, contact us for assistance today.