Is Term Life Insurance really worth your money?

/ Life Insurance / Nov 8, 2022

Short answer, yes. If you are on a budget, term life insurance is the way to go.

Wondering whether life insurance is worth your money or not? Yes, it is – especially if you have loved ones relying on your financially.

Life insurance helps to protect your family financially in case the worst happens to you. Term Life Insurance, in particular, provides coverage at the most affordable price, thus, making it the ideal choice for families on a budget.

What is Term life insurance? How does it work?

Term life insurance is worth it if you are looking to ensure your family’s financial security at an affordable price. It is a simple and the most affordable life insurance plan that protects your family for a specific term, typically 10, 15, 20, or 30 years.

You choose the length of your term matching your financial responsibilities. For example, until your mortgage is paid off or your kids complete college.

It is easy to determine the length of your term. You can use an online life insurance calculator to receive a recommendation on the amount of coverage and the length of the term that best suits your financial situation or get in touch with a licensed life insurance advisor.

As long as you pay your monthly or yearly premiums in time, a life insurance policy provides financial protection for your family. If you die within this time frame, your beneficiary or beneficiaries would receive a payout also known as a death benefit.

This money can be used to help pay for funeral arrangements and other end-of-life expenses, along with daily bills such as a mortgage and childcare.

You may wonder what happens after your period ends. The coverage ends. You don’t get back the premiums paid (unless you have signed up for return of premium life insurance). But that’s the point of having term life insurance: having affordable coverage in place during those crucial years in case the worst happens.

Who needs a term life insurance plan?

If you have loved ones who are financially dependent on you, such as partners, children, siblings, or parents, then you must purchase a life insurance policy. Even if you do not have any family member depending financially on you, life insurance can be still be a valuable solution because you never know how responsibilities change in the future. The younger you are, the cheaper it is.

An easy way to find out if you need term life insurance is to use any online life insurance calculator. It will take your needs, age, budget, family structure, and more into consideration to provide you with a personalized recommendation. It will also tell you if you do not need coverage at all.

In short, term life insurance is a cost-effective way to help protect your loved ones financially. The death benefit of a policy could help:

  • Replace any lost income.
  • Pay for living expenses like a mortgage or rent.
  • Pay off the debts (if any) you leave behind.
  • Provide childcare if you are a stay-at-home parent.
  • Pay burial, inheritance taxes, and other final expenses.
  • Finance college fees.
  • Pay unpaid taxes or medical bills.
  • Leave an inheritance.

For a small amount of money, you can support your family’s financial well-being even after your death, thanks to term life insurance. Also remember that the death benefit that your chosen beneficiaries will receive is generally tax free.

How much does term life insurance cost?

The cost of a term life insurance policy will depend on your age, gender, and health, as well as the length of the term and the amount of coverage you choose.

A $500,000 term life coverage for a healthy 35-year old male non-smoker would typically cost only $22/month. Know how much term life insurance would cost for you – get in touch with our advisors for a free consultation.