When you think of term life insurance think of it being one of the most cost effective types of life insurance. It generally lasts for a certain term then terminates. It’s used either when you need more coverage than you can afford with permanent life insurance so the agent blends the two or it’s used if permanent life insurance isn’t affordable, but coverage is needed. In most cases, the term life insurance can be converted to permanent.
Term Life Insurance vs Mortgage Insurance
Most families use it to protect their 30-year mortgage. Did your real estate agent or mortgage broker suggest you use life insurance versus your typical mortgage insurance? Unless they are connected to a life insurance agent, chances are they have no idea. But, the difference is that life insurance has more benefits than your typical life mortgage insurance like living benefits, meaning, that if you get sick, disabled, or injured, you can access your life insurance death benefit while you’re alive. Also, depending on the kind you get, you can have flexible premiums and develop cash value. That’s money you can also use while you’re alive for vacations, retirement, college planning etc.
How Much Is Term Life Insurance?
Most people overestimate the cost of insurance by four times! Life insurance varies depending on your age or health, but you can get approved for term life insurance for as little as $30 a month. But, you’ll have to consult an agent and possibly take a medical exam before you get approved.
If you don’t have any current coverage and have a tight budget, consider getting term life insurance. If you find yourself living tightly already, imagine what will happen if you walk out of life? How will your family recover? If you currently have life insurance, consider getting a quote to see if you can save money or get yourself something better! When was the last time you looked over your coverage?