Life Insurance

Life Insurance Doesn’t Need To Be Complicated or Expensive

Term Life Insurance: The Simplest Form of Life Insurance

Term Life Insurance is the simplest form of Life Insurance. It provides affordable coverage and protection for a specified period of time at a certain benefit level. You choose a coverage level (between $50,000 and 5 million) a term (usually 5, 10, 15, 20 or 30 years) and then name a beneficiary. If you die while your Life Insurance policy is in force, the death benefit is paid to your beneficiary, usually tax free.

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How Are Term Life Insurance Premiums Calculated?

The price of the Term Insurance is based on your age, health and the length of the term. At the end of the term of the policy, you can renew your coverage, usually at a higher price (because you’re older). Term Insurance is good fit for many people because it helps them meet a number of personal and business needs at a low cost.

Term Life Insurance:

  • Protects family and loved ones from financial disaster
  • Helps pay the mortgage and other essential obligations
  • Will finance education of loved ones
  • Helps preserve a family business
  • Provides fantastic peace of mind

Term Life Insurance 101

Term Life Insurance is usually the most inexpensive type of insurance. It is “pure” insurance, which means that it does not have any cash value and you cannot borrow against it. It is basically called Indemnity Insurance, which means you have the insurance and if you suffer a loss (death) the beneficiary will receive compensation in the amount that the policy is worth.

Term Life Insurance is purchased by people that can’t afford a large amount of money for insurance but have significant obligations and want to make sure their family and loved ones are secure if they die unexpectedly. Benefits are usually used for debt reduction or elimination, paying off the family home, funds for children’s education or even to help with the final burial expenses for people.

How Much Life Insurance Does Your Family Need?

Another issue is to consider is the amount of Life Insurance that a family needs. Many times we think of Life Insurance as strictly family protection. I like to remind people that when one of the parents dies, it may be a good idea to have enough coverage in place that allows the second parent to quit work or reduce the workload and have more focus on the children. This means the children don’t have to lose both parents when one dies, one parent to death and the other to work overload.

Is Life Insurance Right for You?

Life Insurance is one of the most debated subjects in the insurance world and ultimately, it has to make sense for you…any agent that is trying to push you, or convince you to purchase ANY type of insurance should be ashamed of themselves.

I’m a former Police Sergeant with a Bay Area Police agency. I have seen way too many times when tragedy hits a family, how nice it would have been for them to have had some forethought for the people they’ve left behind.

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