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What you need to know about term life insurance

If you have people who depend on you financially, you need a safety net in case something goes wrong. That’s where term life insurance comes in.

 

What exactly is term life insurance?

With term life insurance, you name a beneficiary or beneficiaries – usually your spouse and/or children – and they receive a tax-free death benefit if you pass away. The amount of the benefit should be enough to help them remain in their home, cover their living expenses and remain on track for financial security during a very difficult time.

“What we are trying to protect is your family’s ability to maintain their lifestyle. We want to make sure that if you die, your family members will still be able to save for education, retirement or whatever their goals may be.” –Scott Loney, Head of Insurance at Planswell.

 

Do I need term life insurance?

We get asked this a lot, and the simple answer is that, if there is anyone who counts on you financially, then you should consider term life insurance. Here are some clear signs:

  • You have kids. Life insurance can ensure that they’re able to sustain themselves and still pursue goals such as post-secondary education.
  • You’re married. Life insurance can prevent debts, mortgages, rent or other bills from adding financial strain during an emotionally difficult time. It can also help your spouse remain on track for retirement.
  • You support causes. Life insurance is a great way to leave a tax-free benefit to a school, church, charity or other causes that matters to you.

 

Things to consider about term life insurance

There are a few things that you’ll want to consider about term life insurance, such as the proper amount of coverage, the term, your age, your medical history, and the premium that you’ll be paying. The optimal insurance coverage will fit within your budget, complement your financial plan, and most importantly, provide the right amount of protection to help your loved ones survive and thrive.

While it might not be a conversation you’ve thought about before, the sooner you look into insurance, the better. Being younger and having a clean bill of health will make it both easier and cheaper to obtain coverage.

 

Moving forward with term life insurance

While it’s easy to call up any insurance agent and accept the first quote you receive, you’ll want to go somewhere that shops the market to find you the right price from the right insurer. Planswell can help with that. We work with a variety of industry-leading providers and will research the best policy to protect you and your family.

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