Term Life Insurance

Term life insurance is good for a certain time period and costs a lot less than whole life insurance. Term life insurance (TLI) is usually good for 10 to 30 years and is great for a couple or a small business owner prior to retirement. A couple would buy a 30 year term policy when they are younger and want to make sure that the spouse and immediate family are taken care of if something were to happen. The amount varies based on the need of the family, but generally you want to look at income, average monthly bills, and age of the children to determine the amount needed.

For business owners they are looking to ensure that if something were to happen, the company could restructure and find a replacement while still maintaining the business.

Most customers who buy term life insurance out-live their term policy, but it gives them coverage and piece of mind in case something were to happen during the specified time period. Many employers offer term life insurance while you are employed. If you leave the company, many loose their life insurance or they can self pay for their policy. But please be aware you could pay into a term policy and believe you have coverage until you pass in your 80s or 90s, when in actuality this type of insurance is only for a set time frame and does not build cash value. Remember term life insurance is for a certain period of time, so if that time period is up you have to either renew for another term (time period) or look into whole life insurance.