Term-Life Insurance

When you purchase a life insurance policy, you typically pay a monthly or annual premium to the insurance company. In exchange for your premium payments, the insurance company agrees to pay a lump sum, known as the death benefit, to your beneficiaries upon your death.

Term Life Insurance provides death protection for a stated time period, or term for a specified premium. It is usually considered the simplest form of life insurance. It was developed to provide life insurance for a limited period of time, for an inexpensive rate. Since term insurance can be purchased in large amounts for an inexpensive premium, it is well suited for short-range goals, such as to cover loans or income replacement during child-raising years.

Term life insurance is also the most cost-effective way to protect your family because once the term expires, there is no longer any benefit to be awarded.  This makes it a much safer bet for insurance companies and the rates can be incredibly affordable.

When you apply for life insurance, the insurance company will evaluate your health and other factors to determine your risk of dying during the term of the policy. The insurance company will use this information to determine your premium, with higher-risk individuals typically paying higher premiums.

Life insurance provides financial protection to your loved ones in case of your unexpected death and can help ensure that they are taken care of financially. It’s important to carefully review the terms of any life insurance policy before purchasing to ensure it meets your needs and budget.