As the name implies, term life insurance is a policy that provides coverage for a specific period – usually between 10 and 30 years. If, during that time, the policyholder passes away, then any beneficiaries are entitled to receive the totality of the policy’s payout. 

Outside of term life insurance, the other most popular type of coverage is whole life which lasts your entire life – assuming that the policy premiums continue to be paid. Unlike term life insurance, a whole life policy also includes a cash value where a portion of your premium cost is invested with the sum growing on a tax-deferred basis and available to withdrawal in a hardship. 

Since term life insurance only covers the policyholder for a specific period and does not contain a cash benefit, it is less expensive than whole life insurance. Benefits offered with a term life insurance policy include the following:

• Lower premium costs
• Flexible coverage timelines
• Guaranteed death benefit
• Accelerated death benefit

When determining how much coverage to purchase, you’ll want to consider your current and future expenditures. For example, you’ll want to purchase a term life insurance policy with a high enough death benefit to pay off your debt obligations such as a mortgage or student loans. In addition, if you are funding college savings accounts for your kids or other large purchases, then opt for a premium that will provide enough coverage to pay for that. 

At Outdoor Insurance Services in Houston, TX, our dedicated team of insurance professionals can answer all your questions and help you decide if a term life insurance policy is right for you. Give us a call today to schedule a no-obligation appointment to learn more.