Term Life Insurance Is a Reasonable and Affordable Choice

When it comes to thinking about life insurance policies, many people are uncomfortable planning for their old age and/or unanticipated death. One third of the adults in the United States today are living without any form of life insurance coverage for this reason or because they mistakenly think they cannot fit an expensive premium into the already-stretched monthly budget. While permanent life insurance is definitely a significant expense, term life insurance is much more affordable and a very practical way to ensure care of loved ones in case of your untimely death.

Term life insurance is protection you buy to provide for your loved ones as long as they are dependent upon you. With the historic low prices right now, this is an excellent time to evaluate your needs and the finances available to your family if you could suddenly no longer provide for them. For many people, this will be a specific time period, such as until retirement begins, until the children leave the nest or until college or wedding expenses would be covered.

Experts recommend that as soon as you have a spouse or children for whom you are responsible, it’s time to consider buying term life insurance. Imagine what their lives would look like without your regular income. Would they be able to pay the mortgage? Would your spouse need to get a second or third job and put the children in daycare or take them out of private school and special activities? Would their lifestyle be drastically reduced? Term insurance is a loving way to protect your loved ones against these frightening scenarios.

The cheapest rates for term insurance are available to those who are young and healthy. For a few hundred dollars a year with a pay-back of $250,000, you can choose an annual-renewable policy that usually requires only an initial medical proof of heath. Term policies can be adjustable rate, in which the premiums rise periodically, or for a little extra, you can opt for a fixed-rate premium for 10, 20, even 30 years or more. Most are also convertible into permanent life insurance without further health checks.

Term insurance is not an investment tool. If you outlive the policy, it does not pay you any dividends. However, as pure insurance coverage, it protects your family and provides them with a lump sum if you die while they are still dependent upon you. It may keep your spouse living in the house you both loved or see your daughter through college or provide for the care of an adult dependent.

When calculating how much term insurance to buy, add any such additional expenses to the total of approximately 7–10 years worth of your yearly income and benefit package. You’ll be amazed at how much insurance coverage you can actually afford, especially because term is so much less expensive than permanent or whole life. Of course, rates go up significantly as you age. The 50’s are more costly and the 60’s even more so. It may not even be possible to buy term insurance once you hit your 70’s.

Health factors can also affect your premium. Stop smoking and lose some weight, if those are issues and you really want to save money. You may need to give up any dangerous hobbies as well if you want the lowest possible premiums. The most important factor is to buy young, while you have fewer health issues and the premiums are the least expensive.

Finding a knowledgeable term life insurance agent will help you get the best deal possible, especially if you do have any of the above-mentioned conditions. Buying term insurance is something you can do while you are living to protect your loved ones should you leave them too soon. It’s a smart and loving decision, and one that you really can afford.