Term life insurance is used to cover terminal obligations that would be unmet if you died prior to the termination of those obligations. This could include certain debts, major life planned events like sending a child to college, or funding retirement for your spouse.
Term insurance is also often used to prove for loss income that would result if you died prior to retiring.
Term Life Insurance is for "temporary" needs. E.g. If you have 25 years left on your mortgage, purchasing a 20-30 year term life insurance policy is a cost effective way to cover that substantial debt. You do not purchase Term life insurance to borrow from in the future, because Term life insurance does not have cash value. It is generally the lowest cost form of coverage because it may end before death occurs.
First you have to understand what Term Life Insurance is. Term Life Insurance is Life Insurance covering you for a specific period of time. The common "terms" are 10-15-20-25-30 years. Term Insurance is also the least expensive of all Life Insurance, at least initially.
Understanding this, people get Term Life Insurance for several reasons including; mortgage coverage, other loans, family protection while the kids are home, providing replacement of income if death occurs during working years.
The idea is providing protection for a period of time which will replace income or debt if death occurs prematurely. Example, for your mortgage, if you have a 30 year mortgage, with a 30 year term, death occurs before the mortgage is paid off, then the death benefit can be used to pay the outstanding balance. If kids are at home, growing up, you want to make sure they can have all the opportunities available to them even if the "bread winner" passes prematurely.
All Life Insurance provides financial security when death occurs.
If you have any other questions or need a quote, do not hesitate to contact me.
Thank you.
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Term insurance is also often used to prove for loss income that would result if you died prior to retiring.
Understanding this, people get Term Life Insurance for several reasons including; mortgage coverage, other loans, family protection while the kids are home, providing replacement of income if death occurs during working years.
The idea is providing protection for a period of time which will replace income or debt if death occurs prematurely. Example, for your mortgage, if you have a 30 year mortgage, with a 30 year term, death occurs before the mortgage is paid off, then the death benefit can be used to pay the outstanding balance. If kids are at home, growing up, you want to make sure they can have all the opportunities available to them even if the "bread winner" passes prematurely.
All Life Insurance provides financial security when death occurs.
If you have any other questions or need a quote, do not hesitate to contact me.
Thank you.