Featured Finance

What You Should Know about Term Life Insurance

Life is full of uncertainties and nobody knows when we depart from this world. Because of this, it only makes sense to begin considering the needs of your family when it comes to finances. Fortunately, no matter how much your budget is, there is a type of life insurance you can buy.

A $250, 000 term life insurance policy might be enough for you. Whether you are young or old, having insurance coverage helps you provide for the financial security of your family. If you are still single, you may want to ensure there is money that can be used to cover your funeral or burial costs if you die prematurely. You are probably asking yourself some questions such as “How much will a $250,000 life insurance policy cost me?” You can find out from Affordable LIfe USA.

Why Buy Term Life Insurance

In general, life insurance replaces your income when you die so that the people you will leave behind can pay their living costs and debts. As term life insurance is more affordable than other types of insurance, it has become a famous insurance choice.

When buying a term life insurance policy, your chosen insurance company promises to pay your beneficiary a certain amount when you die during the term of the policy. In exchange, you have to pay a monthly premium to the insurance company for the term’s duration.

Your chosen death benefit amount is often used for covering funeral expenses, mortgage, debts, or as a replacement for lost income. But, your beneficiary can use the amount in any way they want. Make sure you pick your beneficiary wisely. You can choose many beneficiaries who will split up the money however they want.

Kinds of Term Life Insurance

  • Level premium. With this term policy, your premium remains the same. You may be also given the option to renew your coverage once your term ends without going through a medical exam. But, expect the premium to increase significantly every year.
  • Annual renewable term. This provides you one-year coverage with the option to renew your cover every year for a specific duration like twenty years.
  • Guaranteed issue. This is generally the policy of choice for people with an illness or problematic medical history. But, this policy comes with a higher premium than others. This is because your insurance company doesn’t require medical exams to cover people.