When it comes to risk management, term life insurance can be an excellent way to protect yourself from the greatest tragedy.
With that being said, many people do not have it because they don’t want to think about, much less plan for, such an unfortunate possibility. Still, it is generally considered that most working individuals find themselves in a situation where they should at least start educating themselves on the topic.
This is why this article is intended to help you understand a few of the most important term life insurance benefits.
Once you understand a bit about what term life insurance can offer you, you may be better equipped to begin considering a plan appropriate for your personal circumstances.
1. It Offers Protection During The Period You Choose
The most obvious element that defines term life insurance is that it can provide coverage within a specific period; the term.
When compared with whole life insurance, having an end date on a life insurance policy might seem like a disadvantage, but this is often not the case. This finite coverage comes with its own advantages, including affordability.
With a term life insurance policy, you choose the length of time that your coverage will remain in effect. During this term, the death benefit could help your beneficiaries to accomplish an important goal if something were to happen to you. Such goals could include paying a mortgage or funding a child’s education, among many other financial concerns. Ideally, you would plan for your policy to end after these goals were met, or after you and your loved ones have found greater financial stability. As a result, you only pay for coverage when you deem it most necessary.
It Can Replace your Income
Income replacement is a benefit of having term life insurance.
Term life insurance has the potential to replace your income if anything were to happen to you.
If this is a benefit you might consider, you should work with your financial professional, and perhaps your CPA, to determine an appropriate death benefit. The death benefit consideration would generally take into account various investment vehicles available to your beneficiaries to generate income for their needs.
This is by no means a guaranteed strategy, but it does have the potential to provide for your beneficiaries for the long-term, even after the event of your untimely death.
It Has A More Affordable Premium
Last but not least, term life insurance often has a more affordable monthly premium, for the death benefit it could provide you.
These affordable premiums are not too good to be true, of course. You must take into account that term life insurance has no cash value. That is, it does not carry any value except the death benefit that you receive if you pass away.
Get in Touch…
If you haven’t built as much wealth as you need to call yourself “self-insured” or have goals that may not be fulfilled in the event of premature death, you may want to consider an insurance policy for protection.
We hope that these 3 term life insurance benefits are able to help you determine if this type of coverage is a good idea in your situation.
If you need more tailored information based on your specific financial situation, you can contact us and we’ll be more than happy to help!
This article is for general educational discussion and is not intended as an invitation to purchase any life insurance policy. All recommendations for life insurance policy types and face amounts must be suitable and appropriate for the client and must be based on a thorough fact finding and understanding of the client’s unique financial situation and life insurance needs.