The Basics of Term Life Insurance
When you are shopping for a life insurance policy, you will find that there are generally two types to choose from: term and whole life. Term insurance, like the name implies, is good for a specific period of time, such as 1, 10, 20, or 30 years. Whole life insurance stays with you throughout your entire life. If you’re looking for affordable coverage without committing to permanent coverage, then a term policy may be for you.
What is term life insurance?
Life insurance helps your family when you are no longer there to do so. From remaining debt to funeral expenses to saving for financial goals, life insurance can help to replace your income so that your family can avoid financial hardship after you pass.
Term plans are life insurance products that provide coverage for a fixed period of time against the eventuality of death. If the insured person dies during the policy term, a death benefit would be paid out to the beneficiaries. Although the emotional loss of a death cannot be compensated, the financial impact can be minimized through the death benefit proceeds.
How does term life insurance work?
The life insurance death benefit is guaranteed to be paid out to beneficiaries if you die within the term period. However, if you outlive your policy, no benefit will be paid out and you will need to purchase coverage again in order to have life insurance.
Term life insurance is designed to provide you with plenty of coverage at a time when you are most financially vulnerable. This type of policy is ideal for someone who wants to cover their family for the length of their 30-year mortgage, until their kids turn 18, or until you pay down your debt, among many other situations.
Life insurance is meant to take care of your family’s finances. If you’re not sure which policy is right for you, talk to the team of professionals at UniVista Insurance Hialeah|Cutler Bay. We can help you select the right policy for your family’s needs. Serving Florida residents, contact us today to get started