Wondering whether or not term life insurance is a good choice for you? Read on.
Term life insurance is an insurance policy that provides protection for a specified period of time.
If you’re new to the world of life insurance, term life insurance can be a good place to start because it generally costs less than permanent life insurance policies. Term life insurance is also available in varying term periods with fixed premiums from a one-year annual renewable term to a 20-year level term.
Furthermore, some term life insurance policies can be converted to permanent coverage as your needs change.
When should I consider term life insurance?
Whether or not you should consider purchasing a term life insurance policy depends on several factors.
You may want to consider a term life insurance policy if:
- You have a spouse
- You have dependent children
- You have an aging parent or physically challenged relative who depends on you for support
- Your retirement savings are not enough to insure your spouse’s future against a rising cost of living
- You have a sizable estate
- You own a business