Term Life Insurance

Term Life Insurance

Buying term life insurance is the easiest way to get a substantial life insurance policy while keeping the monthly payments affordable. These policies only last for a predetermined amount of time, but the rates are almost always set for that term, meaning your monthly payments will remain the same for the life of the policy. However, once the policy does expire, the cost of buying a new policy can increase.

It is important to remember that there are several different types of term life insurance. The most common type is “straight term”, which is set up so that both your death benefits and your monthly premium are fixed and will not change over the course of your policy. In addition to these policies, there are also “decreasing term” variations (benefits gradually decrease, premiums stay the same) and “annually renewable term” policies (benefits stay the same, premiums increase each year). Each of these variations has their own unique advantages, so it is important to consider each.

The first and most important thing to consider why buying term life insurance is how much coverage will be needed. There are several common opinions on this matter, but as a general rule, most experts recommend a policy that offers 10-times the benefit as one makes in a given year. For example, if you make $60,000 per year, you will want to choose a policy that offers at least $600,000 in death benefits.