WEDNESDAY, JANUARY 12, 2022
Are you ready to buy life insurance? It is not hard to become overwhelmed with all the options you have. Most policies offer a great deal of features that could help you to find the right protection for your family. How can you navigate it all? Start with the basics. Take a look at a few key aspects of term life insurance and how to compare policies.
What Is the Term?
Most life insurance policies have a term limit. This is the amount of time that the policy remains in place. If a covered person dies during that term, the policy makes a death payment. That’s the term used to describe the payment from the insurance company to your loved one. The payment goes to your beneficiary, the person you name to receive it. With term life insurance policies, you can pick how long you want the policy to remain in place. This may offer fewer changes in costs.
Many people choose a term based on their family’s needs. For example, you may want to have life insurance in place long enough to cover your family while your kids are still young. You may want to choose a policy that covers your family as long as you have a mortgage. The length of the term can impact cost. Longer terms typically cost a bit more, but provide longer protection.
What Is the Coverage Amount?
How much do you want to leave behind for your family? As noted, some people may choose to leave enough to accomplish a specific goal, such as paying off their mortgage. Others may want to choose a policy that provides enough financial support for their family for two to five years. You can also choose a larger amount.
What Is the Premium?
This is the cost of the policy. It is how much you need to pay to maintain coverage. When comparing policies, be sure to consider whether the premium changes over the term. If so, by how much? What can you expect if you purchase a second term life insurance policy? Will the premium be lower or higher? These are key questions to ask when comparing various insurance products.
Life insurance can be very flexible. Policies can differ significantly to meet just about any goal you have. Keep in mind that life insurance should fit your goals. That means choosing coverage that is affordable to you but offers enough protection for your family’s unique needs.
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