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Term Insurance

Type of Insurance

Term Insurance - Affordable Temporary Coverage
Life insurance plays an important role in providing for your loved ones financially if you were to pass away unexpectedly. Term life insurance specifically is the most affordable form of coverage for protecting your family's future during your working years when they depend on your income. Here's an overview of how term insurance works and why it may be a good fit.

What is Term Life Insurance?

As the name implies, term life insurance provides coverage for a specific time period or "term" - typically 10, 20 or 30 years. It pays out a lump sum of money to your listed beneficiaries if you die during that term. This can help pay immediate expenses like funeral costs while also replacing lost income to maintain your family's standard of living.  

Term policies only pay if death occurs during the term. So, if you outlive the term, the coverage expires without payout. This is different from permanent life insurance, which remains in effect indefinitely. The limited coverage duration is what keeps term insurance affordable.

Why do you have to look at Term Insurance?

Term life insurance shines when you have people depending on your income to cover expenses - and would struggle financially if you passed away. It provides cost-effective peace of mind that your death won't derail their stability. Some reasons to consider a term policy include:

- You are the primary breadwinner with young kids
- You have a non-working spouse who relies on your income
- You have elderly parents you help support
- You have sizable debts others would have to pay like mortgage, loans, tuition
- You own a business with others relying on continued operations

Generally, the younger and healthier you are when purchasing term insurance, the lower your premium payments will be. Once the term expires, you can reassess if extended coverage is still necessary.

Term Life Insurance and how much it may cost?  

Term life premiums are based on factors like age, health, lifestyle and the length/amount of coverage. A healthy 30-year-old may pay $150-300 annually for a $500,000 20-year policy. That's less than $1 per day to put towards protecting your family's financial future in case of tragedy. Shop different highly-rated carriers to find the best rates. Approaching qualified agents can help you to simplify the process.

Term life insurance can seem like an unnecessary expense - until you really calculate what's at stake for those depending on you. It's a small price to pay for making sure your loved ones don't also suffer financially. Consult with an insurance pro to make sure your coverage needs are met.

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