Term Life Insurance
What Is Term Life Insurance?
Life insurance, in general, is used to provide money to your loved ones after you pass away. You pay a premium, and your life is insured by an insurance company for a specific amount. Generally, the amount your beneficiaries receive as a death benefit is greater than the total amount of premiums you pay. For example, depending upon your age, you might pay only a couple of thousand dollars a year to receive a few hundred thousand dollars worth of a death benefit. So, what is term life insurance? It is a life insurance product, set for a specific term.
There are quite a few options when considering a policy. For example, how long do you want the coverage to be in effect? Terms can range from as little as 1 year up to 30 years. In addition, there are policies that keep your premium payment and your benefit the same the entire term. On the other hand, some contracts reduce the death benefit of the policy as the term nears. Still, other term policies offer ways of converting them into more permanent policies. As you can see, many options exist.
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What Is Term Life Insurance in Retirement?
If you’re still a bit away from retirement, term life insurance is worth considering. For people in the beginning or middle of their financial journey, term insurance may be a good option. Because the monthly premiums are usually lower than permanent insurance, some people are more easily able to fit term insurance into their budget. Also, if you are still working on building your retirement savings, a term policy might help give you peace of mind.
Converting Your Term Life Insurance
For some people, there may be an option to convert their existing policy. For example, converting to permanent insurance may give you flexibility with your plan. With permanent plans, you may be able to add long-term care options or build cash value with your policy. You may be able to add possibilities to your retirement plans as well.
At Orfin & Associates, we know life insurance. Contact us today to find out which options suit you best.