When Does a Term Life Insurance Policy Makes Sense?

Do you need a life insurance policy to protect your family?

When it comes to buying life insurance there's an old saying that may apply -

"buy term and invest the rest."

To understand when it makes sense to buy a term life insurance policy for you and your family, you first need to consider the reason(s) why you are getting insurance in the first place.

Let me explain.

The benefits of term life insurance

You buy auto insurance because you have to.

It's the law in every state (as far as I know), and if you purchase a new car the loan company mandates that you have auto insurance.

So what is the goal of the insurance?

To protect you AND other drivers in case you have an accident.

Full coverage means that you want to replace the car should it get "totaled." Choosing "liability" coverage means you want the bare minimum to legally be allowed to drive, and if the car gets wrecked you don't expect to get full reimbursement for your car.

Okay, that's pretty straightforward.

Yet, when it comes to life insurance it gets complicated because there are:

1. whole life policies
2. variable life policies
3. universal life policies
4. term life policies

Needless to say, it can get a bit confusing. So let's focus on when you might want to get a term life insurance policy...

As the name suggest, term life insurance policies last for a certain amount of time before they expire.

At least, that's what most people think.

Actually, the "term" implied by the name is the length of time your policy premiums are guaranteed. Meaning that the amount you pay will not increase over the set term.

That means a 10 year term policy will cost you the same each month (or year) during the guaranteed time frame.

So what happens after the term "expires?"

Well, the premiums will go up. And depending on your age when the term expires the increases can make the policy too expensive to keep.

That's why few people keep the policy past the set term.

Some term policies have a "conversion" provision that allows you to change the policy from term to another type of life insurance, such as whole or universal life...

Now, the question you might be asking is when (and/or why) someone would choose a term policy over other life insurance types.

Well, on a cost basis term life insurance is the most affordable kind of life insurance. That means you can get maximum coverage for pennies on the dollar.

Second, term policies are very good at providing "temporary" coverage that is very affordable for most families.

In my case, since I have 2 young children, term life insurance makes sense for my wife and I because the concern is to provide for our children should something happen to either one of us.

So I chose a 20 year term policy that provides coverage for me until my daughter turns 22 years old (and my son 27). By then they should both be out of college (hopefully!) and established enough that a loss of my (or my wife's) income would not adversely affect their lives.

Other "short term" uses for term life insurance might include covering your ttotal mortgage amount after buying a home or condo.

The idea is to opt for maximum coverage for the minimum price to protect you and your family during the the most financially vulnerable time of your life.

Affordable term life insurance

Get the coverage you need and premium payments you can afford.

To get started, simply click on the link and get your free life insurance quotes online.

Of if you prefer simply call 888.659.2236 and get matched to insurance agents who can help you get the coverage you need for the best price.

After all, the choice is yours...