Three Things You Need To Know About Term Life Insurance
If you are concerned that your family will struggle financially after your death, you should purchase a life insurance policy. There are multiple types of policies available, but term life insurance is a great option for many families. Check out a few important things you need to know about term life insurance.
1. Term Life Insurance is Affordable
When you are on a budget, every dollar counts. Term life insurance is one of the most affordable options to protect your family from the unexpected. You can secure even better premiums by making sure that you are as healthy as possible when you buy the policy. Many insurance companies require a physical before they will approve your term life insurance.
Stop using tobacco products, and take steps to reach a healthy weight. If you have a pre-existing health condition, you may still be able to purchase a term life policy. However, your premium will be higher than a comparable individual who does not have your condition.
2. Term Life Insurance Through Your Employer is Not Sufficient
Many employers permit their employees to purchase budget-friendly term life insurance policies. Though a policy through your employer has its benefits, do not depend solely on it to provide for your family after your death.
If you leave your employer, you will likely lose this life insurance policy. This means that you will have a lapse in your coverage if this is the only life insurance that you have. You will either have to wait until you get a new job and hope it also offers life insurance or purchase a policy on your own. Ideally, you should already hold a policy outside of your employer to make sure your family is always protected, regardless of your employment status.
3. When in Doubt, Go for the Longer Term
When purchasing your term life insurance policy, you will be able to pick from a multitude of terms. Your policy can be as short as 5 years or as lengthy as 30 years. If you are not sure which length to buy, be conservative and purchase a policy with a longer term. Most individuals choose a term that replaces their income until their children are grown and independent.
A longer policy will increase your premiums, but it also ensures that your family remains protected for years to come. It is much more affordable to purchase life insurance in your 20s or 30s than it is in your 40s or 50s, even if you do opt for a lengthy term. If your policy expires when you are in your 50s and you need to renew it, this is going to dramatically increase your premium.
Contact local insurance services for more information.
