Term life insurance is an insurance policy taken out to provide a death benefit to a particular person in the event of your unexpected death. Rather than covering your whole life, you nominate a time period – for example, ten or twenty years. If you were to pass away within that period, the benefit would be paid.
Why would anyone do this instead of taking out whole life insurance? Many people don’t think about life insurance when they’re young and the cost of life insurance policies increase as you get older and pose a greater risk for insurers. Term life insurance can be ideal if you want to protect your family from financial difficulties in the event of your unexpected death.
Some insurers allow you to have a renewal option without having to provide evidence of your good health, so it’s worth thinking ahead and looking for a policy that has a renew option. You won’t get the renewed policy for the same price – as you’ll be older – but being able to renew it for a further period could be a substantial benefit.
Another benefit of term life insurance is that because the policy period is limited, you can insure for a large amount at a relatively low price.
If you’d like to discuss a term life policy with us, we’d be happy to answer any questions you have. Contact one of our helpful representatives today for a competitive quote.
