Situations When Term Life Insurance May Be the Best Solution

Situations When Term Life Insurance May Be the Best Solution

When exploring your options for life insurance, you will be faced with selecting permanent insurance or term insurance. Generally speaking, permanent life insurance, sometimes referred to as whole life, is coverage that remains in place as long as policy premiums are kept up to date. On the other hand, term insurance is temporary in nature, covering the life of the insured for a specific period of time or term.

What are the situations when a term life insurance policy may be the best solution?

When Purchasing a Home

Term insurance is a superb way to ensure your home will be paid off in the event of death. The insurance term generally should coincide with the length of the mortgage. If you have a 30 year mortgage for example, a 30-year term life insurance policy would provide protection while there is still a loan on the property. You can select a decreasing term option, that would provide coverage that decreases as the loan is paid down.

When Getting Married or Starting a Family

Getting married or starting a family increases responsibility dramatically, especially for the next 20 years. Since term insurance is more affordable than permanent insurance, it can frequently be purchased in larger amounts. This will cover the time until a child reaches adulthood, even potentially covering college expenses.

To Cover a New Car Loan

A new car or truck today can easily cost $30,000, $40,000 or more. Term insurance can be acquired that will cover the balance for the duration of that car loan. You may be surprised at how affordable $30,000 worth of term life insurance can be for a period of five or six years.

When Starting or Investing in a Business

Term life insurance is a perfect choice to protect your investment when starting or buying a business. The proceeds can help keep the business going or at least cover any debts the company may have. Life insurance plays a critical role in many business situations to protect ownership interests and term insurance is an affordable option.

To learn more about your life insurance options and how term insurance in particular may be your best choice, contact one of our independent agents. They have access to a wide array of companies to find the best fit for you. Contact us today to get your no-cost, no-obligation life insurance quote today.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Do You Still Need Life Insurance After Age 65?

How Life Insurance Can Help into Retirement

Why Life Insurance Is Such a Good Bet

A Practical Way to Protect Your Family

Why Permanent Life Insurance Is Still Popular

Is Permanent Life Insurance the Best Choice for You?

Why Everyone Should at Least Have a Small Life Insurance Policy

Even a Smaller Life Policy Can Be Meaningful

Life Insurance 101: What Everyone Should Know

Here are the Basics You Should Knowledgeable

Buying Life Insurance When You Have the Most Options

When Is the Best Time to Buy Life Insurance

Unique Situations That Call For a Life Insurance Quote from an Independent Agent

Your Lifestyle May Impact Your Ability to Get Life Insurance

Why Term Insurance Is So Popular

More Families Are Turning to Term Insurance For Good Reasons. Here’s Why.

Setting a Life Insurance Goal

You May Have Goals For Savings and Investments. What About Life Insurance?

Should You Have Life Insurance? HINT: Ask Your Spouse

Odds Are Your Spouse Would Want You to Have More Life Insurance Coverage