Life insurance is not always a topic that people want to discuss for obvious reasons, however, given the state of the world, it needs to be at the forefront of everyone’s minds when it comes to your future plans. According to Bankrate, “54% of Americans had life insurance coverage in 2020.” As we’ve seen over the past year, anything can happen, and it is always better to be prepared and not need, than to need and not be prepared.
What does Term Life Insurance mean?
Term life insurance refers to a type of life insurance policy that offers coverage in the event of a tragedy for a specific amount of time, or a "term". Depending on how long you need coverage for, and the amount of coverage you need, term policies can protect your loved ones from 5-30 years with a death benefit anywhere from $100,000, to possibly as much as 25 times your salary.
Why Term Life Insurance over Whole Life Insurance?
There are essentially two basic options when it comes to life insurance:
- Term Life, also known as temporary life insurance.
- Whole Life, also known as permanent life insurance.
Term life insurance may benefit you from several standpoints. Most importantly, it is more affordable than whole life insurance, given an equal coverage amount. That is because the coverage is only for a limited time, rather than for the rest of your life, so there is no guaranteed payout which means less risk for the insurance company. The additional money left in your pocket can be used to invest and build assets for when your term is completed.
When to buy Term Life Insurance?
As you now know, term life insurance covers you for a temporary amount of time. One of the biggest factors in determining when to buy a term life policy and is anticipating when and how long others may be dependent on your income.
- Did you just have a child?
- Did you recently get married?
- Do you have a mortgage?
These are 3 of the most common reason people elect to purchase a term life insurance policy. Coverage until your child is grown, to cover your spouse until sufficient assets are acquired, or until your debt is paid off.
Do you want to leave more to loved ones? Cover potential loss of income to the household? Then you will need to account for your debts and add more coverage beyond them in order to leave a legacy. Our experts can help you formulate what amount would be best for you in your situation and budget in this case, or any case for that matter. Have further questions about life insurance? Give us a call! Contact us today at 954 828 1819 or visit us online at mhginsurance.com for a quick and easy quote!