What is term life insurance?
Think of it as a way to provide for your loved ones if you’re no longer around. It provides affordable protection for a specific period of time.
Term life insurance can help ensure your family has the money it needs to take care of important financial responsibilities like:
- Paying off debts, including your home mortgage
- Providing extra protection to help raise your children
- Paying for your children’s education
In your term life insurance quote, you’ll choose a timeframe and limit based on your needs in those areas.
Most policies require a medical exam, and your coverage takes effect in four to six weeks.
If you need a small amount of term life coverage, you can qualify for a policy by answering a few health and lifestyle questions, and your coverage will start in as little as 24 hours.
Permanent life insurance
Permanent life insurance comes in a couple of forms.
Whole life insurance is ideal if you’re over 50. It provides guaranteed level premiums, a death benefit and a savings component (called cash value insurance) that builds with time.
Universal life insurance is a more flexible permanent option. It still provides a death benefit and a savings component.
You can also change premium payments as your budget changes, and reduce or increase the death benefit more easily.
Plus, with certain riders you can:
- Use a portion of coverage for yourself if you develop a critical condition such as heart attack, stroke or cancer (critical illness rider).
- Accelerate a portion of the death benefit if you’re diagnosed with a chronic illness that will require long term care (chronic illness rider).