Term Life Insurance – Everything That You Need to Know to Get the Best Policy for Your Needs
Term life insurance is easy to sign up for and offers high levels of coverage for a relatively low cost.
When signing up for life insurance for my family, term life insurance was clearly the better choice for it gave me the insurance I needed and within my budget.
You can earn a higher rate of return with a high-yield savings account or stock market investment than you can with whole life insurance.
Life insurance may feel like a huge decision, but it’s a lot simpler than most people realize. While there are many different types of life insurance, term life insurance offers the lowest cost option to get high levels of coverage with peace of mind. And for any young family, that was a much better choice than whole life insurance.
Term Insurance is easy to start with a low monthly cost. The first reason term life was a better choice than whole life insurance for my family is the cost. My $1 million term life insurance policy came with a $78.67 monthly payment. That’s a low cost for peace of mind that my family will be covered if something happens to me and leaves them debt-free. If I could go back in time, the only big change I would make would be to sign up for even more coverage, as the cost only goes up with age.
However old you are today; life insurance is likely going to be the cheapest or you right now. The longer you wait to sign up, the more you pay per month for the insurance you need to pay all your debts if you die too young. Affordable access to high levels of coverage
A $100,000 in whole life insurance coverage would cost around $60 per month for a healthy 30-year-old nonsmoker male. That’s about two times more than I pay per month for 10 times the coverage of Term Insurance. I didn’t have any kids yet when I signed up for term life insurance, but I knew they would come someday. That day is here, as I’m now a father of three. I’m planning on living well into old age, but if an accident or unexpected illness determines otherwise I am planning on getting income protection so my family will be able to stay in the same home and cover the bills for well over a decade.
Term life gives me a target self-insurance timeline I have a 30-year term life insurance policy that I signed up for at age 28. That means I will have that level of coverage until I’m 58 years old. I have a goal of having enough assets at that point that my family could effectively self-insure. To make sure for your peace of mind coverage add up all your debts including your mortgage. Then add on money for your family live on when are not here and this is the total insurance you need. Find out the premium for this amount of coverage and if the premium is over you budgeted amount scale back the insurance so the premium is within your budget so can keep the insurance in force forever. Note some insurer term insurance plans allow you to add Critical Illness and income protection to cover for these unforeseen happening also.