Term life insurance is a policy that you buy that provides a death benefit for a designated period of time. For example, if you buy a term life insurance policy for a 30-year term, then the insurance company is going to pay out if you die at any time during that 30-year period. You’ll designate the amount of the policy- for example, a $200,000 policy- and you will pay monthly premiums based on the risk of your dying during the term. If you do die, the $200,000 (or whatever the policy amount is) will be paid to the people (beneficiaries) named in your policy.
Why Buy Term Life Insurance?
Buying term life insurance is extremely important for anyone who has people who depend upon him or her in any way. For example, you may have a spouse who needs your income to pay for the mortgage on your shared home. If you are a stay-at-home parent, you may have kids depending upon you to take care of them and you may have a spouse who depends upon you to run the household. If you are a parent at all, you may have kids who need support and a college education. If you are single, you may have your own parents who need you to provide care when they age or you may have siblings who you provide financial or emotional support to.
These are just a few examples of the types of situations where people may need you, and if you fall into any of these situations or have anyone else depending upon you, you need term life insurance. The term life insurance policy will ensure that your loved ones and dependents are able to survive without you. The death benefit can help your loved ones to pay off the mortgage, to pay for college or nursing home care, or to hire someone to care for the kids. Anything that they are depending upon you to do can be paid for by the proceeds of the death benefits so that they do not experience a significant decline in the quality of their life on top of the stress of your death.
Those who are in business may also need to purchase a term life insurance policy too. For example, if you have a business partner who makes an investment in a business with you and who depends upon you, purchasing a term life insurance policy is a good way to protect that partner. The proceeds from a life insurance policy can also allow a partner in a business to buy out your share in the event of your death so they don’t end up having to deal with your heirs in business.
Buying Term Life Insurance
Anyone can buy term life insurance if they have an insurable interest in the person who they buy the insurance on. For example, a wife could buy insurance on her husband’s life, or the husband could buy the insurance directly.
In any case, when the insurance is purchased, it is important to buy enough to fully protect the beneficiaries. A Texas life insurance expert at Selected Benefits can help you to determine how much term life insurance you need to be protected and to protect your loved ones.