If you believe life insurance is essential but you’re looking for a solution that’s more affordable than permanent, lifelong insurance, you may be interested in term life insurance. This kind of life insurance protects you for a set period of time at the lowest initial cost.
That means term life insurance may be a prudent choice for young adults, people with young families or those looking to protect their small business. But it’s a worthwhile option for just about anyone interested in acquiring life insurance at a relatively low cost.
Term life insurance provides low-cost life insurance protection for you and your family. Because it’s more affordable than permanent life insurance, term life insurance allows you to purchase more coverage. Additionally, premium payments are locked in, meaning they won’t change during your selected term (either 10 or 20 years).
In addition, if you have term life insurance and pass away, your chosen beneficiaries – such as your husband, wife, children, other family members or friends – will receive a lump sum payment that can be used to help pay for your funeral and other important expenses.
Your financial security advisor can help you convert term life insurance to permanent life insurance, which protects you for your lifetime (so long as you pay your premiums). Additionally, conversion from term life insurance to permanent life insurance does not require proof of health.
Keep in mind that the cost of term life insurance coverage will increase each time you go to renew it.