As the name implies, term life insurance is valid for a specific number of years – usually 10, 20, or 30. If you pass away during that timeframe, your beneficiaries will be paid the death benefit you choose when opening the policy. That death benefit can be used for anything the beneficiary desires, but typically it is meant to supplement your income and provide a safety net to pay the mortgage, outstanding debts, college education for your children, and anything else you are obligated to pay.
Each year, you’ll make a premium payment that ensures the policy is valid for another year and that payment stays the same throughout the life of the policy. If the term period expires and you are still alive, you’ll likely be able to renew the life insurance policy, but at a higher rate each year. Leo Insurance Group in Las Vegas, NV can help you with any questions you may have.
Is term life insurance right for me?
To decide how much life insurance you need, there are a couple of approaches to take. First, you can simply multiply your current income by how many years you wish to replace it. For example, if your salary is $100,000 and you want to ensure 10 years of income should you pass, you’ll want to purchase a $1 million life insurance policy. Second, you can use the more comprehensive DIME method that has you add your debt, income, mortgage, and anticipated college education needs for your children together to establish a baseline amount of how much money your family will need should you pass away.
Learn more about life insurance and discover how it can be a beneficial tool for your loved ones, by reaching out to Leo Insurance Group in Las Vegas, NV. We take the time to learn about our customers personally so that we can make tailored recommendations based on need.