5 Facts to Know About Term Life Insurance
Here are five quick facts you should know about term life insurance.
Since September is Life Insurance Awareness Month, take a moment to see how life insurance can be a smart move to protect your family.
Here are 5 quick facts about term life insurance that you should know:
Fact #1: Getting term coverage is easy. You can compare insurance prices from many top insurers at once when you use online sites that aggregate quote data.
Fact #2: Term coverage is for a limited period of time. You pay a level premium for a set period of time, such as 20 or 30 years. If you die during the term, your beneficiaries receive the death benefit.
Fact #3: Term life is a good planning tool. A term policy gives you confidence that during a certain period of time, your family could handle potential expenses that will eventually disappear, such as paying for college or a mortgage.
Fact #4: A term policy is inexpensive. Compared to a permanent policy—which pays a death benefit no matter when you die—term coverage is very affordable. That means you can get more coverage to protect your family when they’ll need it most.
Fact #5: You can get your term premiums back. Many term policies allow you to add a feature called Return of Premium (ROP). If you live to the end of the term, 100% of the premiums paid will be returned to you.
More Links You Might Like:
Life Insurance Basics
7 Tips to Buy Life Insurance
Tips to Simplify Your Personal Finances
Should You Buy Permanent or Term Life Insurance?
Insurance Folder photo from Shutterstock
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.
