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Term

Consider term insurance for affordable coverage over a specific time period.

Most people have some type of temporary life insurance either as a term life policy, mortgage insurance, or group life insurance (through work or an association plan).

The purpose of term life insurance is to provide cash in the event of your death so those who depend on you will have the money to:

• settle your debts—mortgages, lines of credit and loans (business & personal),
• remove guarantees by paying off the debt,
• make up for the income you provided to the family, and
• provide for children’s education, marriage, etc.

Term insurance is of a temporary nature. It has a specific, relatively short-term, purpose and generally comes in 5, 10, 15, and 20 year terms. This means that the life insurance rates are guaranteed for that set period of time and they will automatically renew at a higher rate for the next term period. 

Term insurance offers a guaranteed death benefit, but no cash value. Purchasing term insurance is often compared to renting a house. When you rent, you get the full and immediate use of the house and all that goes with it, but only for as long as you continue paying rent. As soon as your lease expires, you must leave. Even if you rented the house for 30 years, you have no "equity" or value that belongs to you.

Term insurance is designed to help people purchase the protection they need when they can't afford to purchase all permanent insurance or when they only need coverage for a specific period of time. Term insurance is also very often the product of choice when protection needs may be high for a period of time, then drop back, such as when your family is growing. Term insurance can also be an effective way to supplement permanent insurance during high-need years, such as when family and other financial responsibilities are outpacing income.

PIB can help you determine if term life insurance is the right product for you. To discuss your unique life insurance needs and to receive a free, no obligation, quote Contact Us.

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