The purpose of term insurance is to cover your family in the event that the breadwinner dies. The amount of term insurance is up to you, whether you want your family to live the rest of their life on the payout or just want them to have enough money to transition into their new life without you. Things to consider when deciding an amount include: educations, final costs, income replacement, and loans. Once children are out of the house, life insurance is not needed as heavily, but still needed. The perfect match for term life insurance is an investment account because when your term insurance expires you can self insure yourself with the gains you made on your investments over the term of the policy.
Pays for the costs to hold the funeral, burial graveyard plot, vault, cremation and, and estate taxes.
Multiply your income by the number of years you want your family to live off it in the event you’re gone to get an estimated amount of how much money they will need.
If you plan on paying for college then estimate the college expenses you would pay and add it in to your policy.
Add mortgages, car loans, credit card loans, student loans, and other loans into your policy.
Garanteed amount decided at the initiation of the policy.
Return of Premium
This gives a time limit on how long you will be paying your policy for (eg. 10 years). After the time limit is up, you won’t have to pay any more and you will get the full death benefit when the time comes.
You will pay one time and then you will have your death benefit for the rest of your life.
Pay every month until the term ends or death
- Multi Policy
- Good Health
- Automatic Payments
- Bank or Card Payments
*Different carriers use different discounts