Term life insurance is not complicated.
It is not an investment. It is protection to make sure your loved ones have secured finances in case of a premature death. There are a lot of flavors of life insurance out there — whole life, universal, indexed, and variable. Today, we are talking about term life insurance. If you are a young couple, a new parent or if you care for someone who depends on your income, term life insurance is often a good option.
What Is Term Life Insurance?
Term life insurance is exactly what it sounds like — coverage for a term of years. This ranges from ten to thirty years — some carriers even offer forty years.
Term life insurance is designed to protect your family from financial ruin in the event of your unexpected death.
You decide the length of time and how much your family would need to cover your loss of income. The insurance company guarantees the death benefit until the policy expires.
If you die within that term, your beneficiary gets the payout. If you do not, the policy ends. The death benefit is income tax free.
If you do not need a term life insurance policy anymore, you can cancel the policies or stop paying premiums without any penalties.
What Determines The Price?
Now, let’s talk about cost.
The longer the guaranteed term, the higher your monthly (or annual) premium will be. If you buy a 30-year policy, you are locking in the premium for three decades. Consequently, it will cost more than a 10-year policy.
The second biggest factor that affects the cost of the premium is the amount of insurance. The more your family needs to cover your loss of income, the higher the premium.
Other factors like age, gender and health play a huge role. Your job, hobbies and lifestyle could be other factors. If you are a smoker, have a lot of moving violations on your driving record or spend your weekends parachuting out of planes, expect to pay more.
For young couples, the best time to purchase their term life insurance is early in your marriage before you get older and health issues start to arise. You want a policy that lasts until your kids are living on their own. Since young adults are living with their parents longer, it may be wise to take out a policy that lasts past your children’s college years.
Why Work with Bick Insurance
As independent agents, we are not here to push one carrier’s product. We shop the market — every time — to find the right policy at the best rate for your situation.
The key to buying life insurance is using an independent agent who has experience, knowledge and access to a wide array of the best carriers.
Your health is unique. Your goals are unique. Your insurance should be too.
Do the smart thing. Lock it in now while you are young and healthy and sleep better knowing your family is covered.
To get started, give our office a call: 954-775-0275.
Mario Bick
Mario Bick is the founder and President of Bick Insurance Consultants. As a former practicing attorney, Mario believes in representing his client first and foremost. His legal and financial background uniquely allows him to plan and communicate with other trusted advisors such as tax attorneys, estate planning attorneys, accountants, and human resource executives. As an independent agent, he is able to utilize the latest concepts and products in the industry to customize an insurance portfolio to meet the needs of every client.
