Are you apart of the 41% of Americans with no life insurance?
Your child doesn't need a new cell phone, but if you die, they do need on average $50k per year for college with dorm, meals and books. Your spouse doesn't need lotto tickets, they need to know that if you die today they can pay the rent or mortgage payment.
Term insurance is basic, inexpensive and easy to understand. It gives you all the coverage you need and none that you don't. That's why it's the best choice for almost everyone.
As the name implies, a term insurance policy is good for a specific period of time; that can be one year, 10 years, 20 years or even up to 30 years. Given that you generally need life insurance only until you've managed to save up money elsewhere, just pick the term that dovetails with the time you need coverage. If you die during that term, your beneficiaries get a payout, known as the death benefit. If you die after the term expires, there's no payout.
*PS term is the most affordable however promises of $1 million in coverage for $25 a month are advertising gimmicks. The advertisers want your information so they can sell it to dozens of agencies! We shop you through dozens of A Rated companies and never sell or share your information.
Whole life policies, a type of permanent insurance, combine life coverage with an investment fund. Here, you're buying a policy that pays a stated, fixed amount on your death, and part of your premium goes toward building cash value from investments made by the insurance company.
Cash value builds tax-deferred each year that you keep the policy, and you can borrow against the cash accumulation fund without being taxed. The amount you pay usually doesn't change throughout the life of the policy. Premiums are significantly higher than term life.
Final Expense policies are a form of whole life. They are usually a lower dollar amount to cover burial costs. Many are guarantee issue, meaning even if you have some health issues you still qualify for coverage. Do to the lower premium they only earn small cash values.