Many people consider getting term life insurance, but are a little hazy on the details of this type of policy. If you have people that depend on you and your income, life insurance is something you might want to consider. Read on to learn exactly what term life insurance is, how much it could cost, and some ways to fit it into your budget.
What Is Term Life Insurance?
Term life insurance is often the most affordable life insurance, offering policies that are typically cheaper than a whole life product. Term life insurance guarantees a pre-determined level of coverage for a certain period of time. As long as the premium payments are made, the coverage stays in force. Unlike whole life insurance, there is no cash value component to a term policy, which is the primary reason the premiums are much lower.
Many people are offered a certain amount of term life insurance through their employer. It can definitely be a good idea to take advantage of this, however, having life insurance through your work is not always enough. Should you lose your job or quit, the policy will no longer be in force. If this happens, your family could be left without the coverage they need in the event that something were to happen to you. For this reason, it may be wise to supplement the policy you may have at work with additional term insurance.
How Much Does Term Life Insurance Cost?
What you will pay depends on a number of factors, including:
- Your age
- Your health
- Level of coverage needed
Typically, an individual between the ages of 18 and 50 can purchase a 12-month, $25,000 term life insurance policy for less than $30 per month. If you do have a health issue or don’t want to go through an extensive medical exam, there are insurance companies out there that only require you to answer a few simple health questions.
How Can I Afford Term Life Insurance?
Many families operate under a tight budget, so it is understandable that they may be hesitant to take on another form of insurance, especially one which is not required by law, the way car insurance minimums are. However, there are companies out there that offer flexible payment options that make it easier to absorb the cost of the premium. Many companies offer the option of paying your premiums annually, semi-annually, quarterly, or monthly. In addition, payments could be made more affordable if you buy your life insurance policy from the same company that takes care of your auto insurance policy.
Connect with Direct
Considering term life insurance, but not sure where to start? Comment below with your questions, or start with a term life insurance quote. Direct Auto can help you apply for the coverage you want and help protect your family’s financial health.