Term Life Insurance: Everything You Need To Know To Get The Best Policy For Your Needs
If you have a spouse, children, or both, and your current and future standard of living depends on the money you bring home each month, term life insurance is the best financial purchase you will ever make! For just a few cents a day you can guarantee that if something unforeseen happens to you, your future will not be assured.
The purpose of term life insurance
Nothing can be simpler than term life insurance. In exchange for a fixed premium, the insurance company agrees to pay your beneficiary (the person designated to receive the proceeds) the full amount of your policy.
This type of insurance policy does not generate any cash value. You simply decide how long you want the coverage to last and pay the specified premium. The longer the duration of coverage, the higher the premium.
Here’s an example of a $ 100,000 policy for a 35-year-old non-smoking male:
A ten year term policy is $ 7 per month, a twenty year term policy is $ 9 per month and a thirty year term policy is $ 13 per month
Here’s an example of a $ 100,000 policy for a 50-year-old non-smoking male:
A ten year term policy is $ 14 per month, a twenty year term policy is $ 21 per month and a thirty year term policy is $ 36 per month
How long do you need life insurance?
Most people will need coverage for longer than they think. Consider these reasons for buying life insurance and the right terms:
You have young children and you want to ensure that in the event of your premature death (isn’t it all premature death?), College is paid for. In this case, the best would be a policy with a term of 25 or 30 years.
You have a mortgage on your home and currently require your income, as well as your spouse’s, to make ends meet. Since most mortgages are thirty years old, I would look for a 30 year term policy.
You and your spouse are 50 years old and have an empty nest, but both income is required to maintain your income level, including saving for retirement. In this case, the ideal is a policy of twenty or thirty years.
Buy the least expensive policy you can!
Regardless of the insurance company, a $ 100,000 twenty-year term policy will pay $ 100,000 in the event of death. Since it doesn’t generate any cash value, it doesn’t matter which company you choose to buy from. The only caveat is that you only want to buy from an insurance company rated “A” or better by AM Best. These are the companies with the strongest finances. On my website you can buy the rates of the best life insurance companies in the United States.
Buying is critical because fees will vary significantly from company to company. Rates over $ 250,000 The thirty-year term policy for a 40-year-old nonsmoker without a physical exam can have monthly premiums from $ 24 with the cheapest insurance company to $ 36 a month for the most expensive insurance company. In all cases, the death benefit is identical. My suggestion is to buy the least expensive plan!
If You Are Healthy – Change Plans and Save Money!
Term life insurance rates have been declining steadily for the past thirty years. Just because you bought a twenty-year policy five years ago doesn’t mean you can’t save money or extend your coverage for the same premium by switching companies. Unlike cash value life insurance, you have nothing to lose by changing plans. But you may have a lot of money to lose if you don’t change. And in today’s economic world we must make our dollars work harder for us!
48% of Americans die without giving up life insurance benefits
While the fact that 40% of Americans die without leaving any life insurance benefits is shocking, another 21% of Americans reported that a loved one died and did not leave enough life insurance. These statistics beg the question: why wouldn’t an income-earning spouse or parent buy life insurance to protect the future of their dependents?
One study found that many people put off buying life insurance because it was too confusing for them. For those people I have very good news! Term insurance is simple. You just choose the number of years you want coverage, get some rates, and then choose the least expensive policy.
Another reason many people don’t buy life insurance is because they don’t want to deal with an insurance agent. These people view insurance agents as little more than salespeople and no one wants to be sold. There is also very good news on this front. As a result of advances in technology, there are websites like mine where you can get a quote and sign up without having to speak to an insurance agent, unless of course you want to!
Term life insurance has never been cheaper
A 35-year-old nonsmoker can get $ 100,000 of twenty-year term life insurance for $ 9 a month. This same individual can leave the same $ 250,000 twenty-year term life insurance for his family for just $ 4 more a month.
So don’t put off protecting your family’s financial future.