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Term insurance is a type of life insurance policy that offers a substantial amount of coverage at an affordable premium.

term life insuranceTerm policies are traditionally sold in what are called level term periods which can vary anywhere from 10, 15, 20, or even 30 or 40 years. If you qualify, the insurance company will guarantee you a premium rate that will stay the same for the number of years selected. For example, a healthy 40 year old could obtain $500,000 of coverage for 20 years at just under $25 per month.

This makes term insurance the ideal solution for individuals who need a lot of protection on a budget, or only need the coverage for a set period of time. Some examples of people who might prefer term insurance are: young professionals, young families, people taking out a mortgage, business owners taking out a bank loan, or businesses with multiple partners or key-employees for buy-sell and key-person insurance planning (visit our business life insurance page for more on that).

A good time to consider term life insurance is when have significant liabilities that will be someone else’s responsibility if you passed way. It’s also a great fit if you have anyone who relies upon your income. A family breadwinner is a perfect example of someone who would be a good fit for for term life insurance. But don’t forget the homemaker who shouldn’t go without coverage themselves.

Some things you may want to take into consideration when you’re thinking about buying term life insurance are:

  • How much life insurance do I need?
  • How long will I need this coverage for?
  • Can I make changes to the policy in the future if my needs change?
  • Is the policy convertible to a permanent plan without evidence of insurability?
  • Are there any optional riders available that I could benefit from?
  • What is the financial rating of the life insurance company?

If you’re unsure how to get started a great first step is to contact your local independent insurance agency – Stolly Insurance. Our team of licensed and experienced agents will help you determine if term life insurance is the right fit for your situation. Call us today toll free at 1-800-686-2147.