It’s important to have life insurance to protect your family, but there are a lot of different types to sort through.
One of these types is term life. Also known as pure life insurance, term life guarantees payment of a stated benefit if the covered person dies during a specific term. When the term expires, you can renew it, convert it to permanent coverage, or allow the policy to terminate. Term life provides protection during your working years with affordable coverage to help survivors weather an unexpected loss.
Why do you need it?
- Income replacement
- Like renting a house: you use the protection for a set period of time
- Can help pay the costs families face during the working years if the breadwinner dies prematurely: housing, education, saving for retirement
- Can be used to pay for expenses associated with terminal illness
How does it work?
- Flexible, normally ends at retirement
- You may increase coverage as your needs evolve
- The benefit typically decreases after age 65, and can end at retirement, when income replacement may no longer be necessary
- Guaranteed issue means you can get coverage with no health questions or exams
Check your benefits guide to see what’s available to you.
Content by Lockton Dunning Benefits with info from https://www.investopedia.com/terms/t/termlife.asp