If you are all alone, this article won’t do much for you. However, if you have family, friends, or business partners that you want to leave something in case you (or them) end up permanently traveling to the other side, you might find this article about term life insurance useful.
What Is Term Life Insurance
There are many types of insurance out there that provide different coverage depending on what you want to protect. For example, if you buy a house with your spouse (or significant other) or a car with a friend and you want to be protected if something happens to either one of you, then it is probably a good idea to get term life insurance. Here are the following types of term life insurance:
- Premium Return Term Life Insurance – this charges more but gives you a return on some of the premiums when it ends;
- Level Term Life Insurance – this one is useful for buying a house and has a set cost for premiums during the length of the contract. That way they don’t increase as time goes on. There is no premium return at the end;
- Annual Term Life Insurance – this insurance is good for one year after which you will need to renew the contract (possibly at a higher contract price).
So basically, it is a fixed price contract that if you die during the term of the contract, your beneficiaries get the money and if you live, you only get piece of mind.
Tips on Term Live Insurance
It is easy to see why you might want to get term life insurance to protect yourself or others when making a large purchase (or business loan) or traveling to a hazardous area or doing something that could easily go awry. Overall, term life insurance tends to be the cheapest life insurance to get and the easiest to understand why. The proceeds from the policy are immediately available and can help tide things over if your survivors need to sell other property in order to survive long term. However there are also good reasons to not get term life insurance and here are some of the reasons not to:
- You already have sufficient coverage under some other insurance policy or through work;
- You are upgrading to a different type of insurance (like whole life );
- Whatever you were protecting is now paid off;
- You don’t need to protect the other person any more;
- You are getting too old and it costs too much;
- You don’t mind taking the risk.
When I used to work with demolitions or serve in the military, I had term life insurance to make sure that my wife and kids would have enough to get by in case something happened to me. I got some again when I bought a house so it would be paid off in case either of us passed before we paid it off. Deciding how much to get is a personal choice based on how much of your resources you want to use to protect against risk. Being that I lived through everything, it appears in my case that the insurance companies won this gamble (at least financially). However, I won by surviving and getting a sense of comfort that my family would be protected.