What is Term Life Insurance?
Term life insurance is the simplest form of life insurance. It is also the most inexpensive.
It covers you for a specific term. During this period of time, your premiums do not change.
Like all life insurance, term life insurance is an agreement between you and the life insurance company. You agree to pay a predetermined premium rate. Your life insurance company agrees to pay a sum to your beneficiary if you die—as long as you were still paying your premiums at the time of your death.
Other common names for this type of life insurance are term insurance or level premium insurance.
Purpose of Term Life Insurance
Term life insurance is most commonly purchased for the following reasons:
- Cover debts / liabilities (i.e. home mortgage).
- Sustain your spouse's standard of living.
- To provide for your children until they are of age.
- To pay for schooling or daycare for your children.
- To fund a buy-sell agreement for your business.
- Protect your business from a key employee death.
The purchase of a term life insurance policy is one of the easiest ways to provide for the financial well-being of your family or business.
Who Should Get Term Life
Insurance?
If you have young children, debts and liabilities, own a business, or want to leave behind a legacy, then term life insurance may be for you.
However, when it comes to life insurance, every situation is different, and there are many different types of life insurance policies.
You should always consult a licensed life insurance agent before purchasing any type of life insurance. At Wholesale Insurance, our life insurance consultants give free advice so you can make the best decisions about life insurance.
