- Term life insurance gives you financial coverage for a set period of time, so your family will be provided for if anything happens to you!
- There are many benefits of term life insurance, including that it’s affordable, flexible, simple, great for young families, and has a guaranteed cost.
- Not all term life insurance plans are created equal, and Everyday Life insurance plans help you get the right amount of coverage at the right time.
No one knows what the future will hold, which is why insurance exists – it protects you when the unexpected occurs. If you have people who depend on you for anything, having life insurance is a must! This will ensure that your family is covered financially if something happens to you, and also give you peace of mind.
While your need for life insurance may be clear (say you just bought a house or you have young kids, for example), the type of life insurance you should get might not be. The main benefit of life insurance – money that goes to your family if you pass away – remains the same across the board, but there are many options for coverage that offer additional advantages. It can be confusing to sort through the different kinds of life insurance to find a specific policy that works best for your family, especially if it is your first time purchasing a plan.
Basically, there are two main categories of life insurance: term life and whole life. In this blog, we’ll explain the benefits of term life insurance and why it may be the better option for you!
What is term life insurance?
Term life insurance gives you coverage for a set period of time. When you have a term life insurance policy, you pay a monthly premium for a defined term (typically between 10 and 30 years, although Everyday Life is one of the few providers who offers terms up to 40 years). If you die during that time, a cash benefit is paid to your family or other people that you name as beneficiaries of the plan.
What are the benefits of term life insurance?
It’s simple. Term life insurance is the purest form of life insurance. It’s only designed to pay your beneficiaries if you pass away prematurely – that’s it. It doesn’t come with an investment component, and it’s easy to manage. You pay premiums each month and as long as you pay those premiums, you are covered for the duration of the policy, which has no other value. There’s no other aspects of the plan that you have to keep up with. When the term ends, you either must buy new coverage or go without.If you work with Everyday Life, we help you find a policy that matches your coverage to your needs, so the ending of your policy term matches with the end of your need for coverage.
It’s affordable. Because term life insurance only gives your beneficiaries protection for a certain number of years as opposed to your entire life, a term plan will be less expensive than a whole life plan. Your premiums will be lower because if nothing happens to you during the set term, your policy will expire and the insurance company will never have to pay out the benefits. Whole life policies pay out no matter when you pass, so premiums for those types of plans are higher.
It’s flexible. With term life insurance, you get to choose the term length and coverage amount, so you don’t have to pay for premiums for years of coverage that you don’t need. You can also buy multiple, separate term life policies for different areas of your life. Say you need a 30-year policy for your growing family, but you only want a 10-year policy to protect against a business investment – you can do that (and Everyday Life plans make this super easy to do!). Unlike whole life plans, term life plans do not have surrender charges (fees incurred if you transfer your policy).
Its cost is guaranteed. Once you enter into an agreement with the insurance company and purchase the policy, your premiums cannot be raised due to illness or other life circumstances – they are guaranteed to remain the same throughout the life of the policy. If you purchase a whole life plan, on the other hand, your insurer does have the right to change the cost of your premiums under certain conditions. Term life takes the stress out of worrying that an unforeseen event could occur and make life insurance more expensive.
It’s great for young families. When families are just getting started – buying homes, buying cars, having children, paying for college, etc. – life can be stressful, especially financially. Term life insurance gives young families peace of mind that what matters most to them will be protected and that they won’t have to break their budget to get that assurance. What’s more, they won’t have to make a financial decision now that will last a lifetime, even though their circumstances will undoubtedly change; term life will only last through this season. Once their kids are grown, they won’t need the same coverage, and they can either purchase a plan with less or cross off a budget expense that is no longer necessary.
Not all term life plans are created equal!
Within the term life umbrella, there are many different types of plans available. Some forms of term life insurance offer more benefits than others, so it is important to do your research and shop for the best rates before buying a plan.
Everyday Life insurance is one brand of term life insurance that works differently from other term life products. Most term life companies offer one price for a bulk amount of coverage that remains the same for the life of the policy, but we understand that even within a 30-year term, your life changes dramatically. Kids could grow up and move out, or you could pay off debt and retire. We offer dynamic term life policies that are designed to change over time automatically based on these life events so that you have the exact right amount of coverage at the right time. This will keep you from paying for coverage that you don’t actually need and save you thousands of dollars compared to other term life products!
For example, other term life plans may offer you $400,000 worth of coverage for a 30-year plan. Your coverage is unchanging during that 30-year period, so your premium stays exactly the same as well, even though by year 18, your youngest will be leaving for college, you will have paid off more of your mortgage, and you don’t really need $400,000 worth of coverage anymore. Everyday Life may offer you a plan that starts at $400,000 worth of coverage, but decreases to $300,000 after 10 years, and down to $200,000 after that based on your unique life situation. It’s a fundamentally different approach to term life insurance, and one that makes more practical sense. With Everyday Life, you only pay for what you need, when you need it.
Try out our needs assessment tool right now to get a quote – it only takes two minutes and you don’t have to give us any contact information.
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