How does Term Life insurance help families in Arizona & Ohio?
Term life insurance is a contract between you and an insurance company that lasts for a specific period of time, such as 10 or 20 years. In exchange for your premium payments, the insurer pays a death benefit to your life insurance beneficiaries if you die during the term of the contract.
Unlike whole life and other types of permanent life insurance that last your entire life, term life insurance expires when the term ends. If you still need life insurance, you may be able to renew your policy, convert it to permanent coverage at a higher premium or buy another policy.
Term life doesn’t build cash value that you can borrow against, like permanent life insurance does. This is one reason term life is cheaper than whole life. With term life, you generally just pay for the potential death benefit; with whole life, higher premiums are needed to grow cash value.
Term life is a good policy to buy if you:
Want low premiums coupled with a large payout when you die.
Want to cover expenses that eventually end, like paying off your house or sending your kids to college.
Do you need term life insurance?
If no one depends on you financially and your death would not be a financial burden on your family, you may not need life insurance. But if someone you care about will need money if you die, term life insurance may be right for you.
Term life insurance policies often last for 10, 20 or 30 years, but some insurers have terms available in one- and five-year increments. If you’re a breadwinner in your family, you can choose a term that matches the years your family will rely on your income, such as the remaining years you’ll have mortgage payments. If you’re a stay-at-home parent, you may want term life insurance to cover services you provide now without payment, such as child care. Your family might need to pay someone to handle these tasks if you were gone.
If you expect your needs will change over time, you can have more than one life insurance policy, giving you extra coverage during the stages of life when you need it most.
Ideally, by the time your coverage ends, you’ll no longer need life insurance. Your children will be grown, your mortgage will be paid off and you’ll have enough savings to be financially secure.
If you buy term life and then decide you need lifelong coverage after all, many policies will allow you to convert your term life policy to permanent insurance. Your premiums will go up, but you can stay insured without having to prove you’re still in good health. Some policies allow conversion at any time, while others permit it only in the first few years of coverage.”
The necessity of life insurance depends on your own personal and financial needs. At PJS Insurance Services we assist and help you determine the type and amount of life insurance that is appropriate for you and your family in the state of Arizona.
Call today at (602) 750-0616
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and start saving more to protect those that matter most.
Experience the difference. To find out how our Independent insurance agency can help you find the right insurance coverage, please contact PJS Insurance Services. Give us a call today at (419) 318-9130.