TL;DR
Term insurance is a pure life insurance policy that provides coverage for a specific period. It offers high coverage at low premiums, making it ideal for securing your family's financial future.
What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specific period or "term." If the policyholder passes away during this term, their beneficiaries receive the death benefit. If they survive the term, no benefit is paid.
Best Practices
Do's
- •Buy early to lock in lower premiums
- •Choose a term that covers your working years
- •Consider inflation while deciding coverage
- •Review and update coverage periodically
Don'ts
- •Underestimate your coverage needs
- •Delay buying term insurance
- •Choose a term shorter than your working years
- •Ignore inflation while planning
Important Considerations
- •Premiums increase with age and health risks
- •Smoking status significantly affects premium rates
- •Coverage should account for future inflation
- •Consider your family's long-term financial needs