Term Life Insurance
Term Life Insurance is just a form of life insurance that covers you for a certain “period”, “time frame”, or “term”.
People often hear the phrase “buy term and invest the difference”. The meaning behind that old saying is to “get as much insurance you can for as little cost as necessary”, buy protection and keep your investments separate. The Benefit Guys agree with that statement 100%
If you think of your car insurance as 1 year term insurance than you can think properly about term life insurance. It is for a term. Most term insurance is available in 10 year cost bands, 20 year cost bands, to age 65 and some companies have a term policy available to age 100. The Benefit Guys often recommend 10 year term and we’ll tell you why.
Life insurance is price sensitive by age. The older you get, the more it costs. The reasons are simple really, you are getting closer to dying each year and the insurance companies don’t have as much time to collect premiums as you age. Here is an example of some cheap term insurance. Let’s say you are a 30 year old non smoking male. You could buy $500,000 of 10 year term insurance for around $25 a month. If you were 40, it would cost $37 and at 50, only $80 a month. Cheap really. Just do the math. Most people can take a 10 year look at life. Nobody we know can look farther than that. The Benefit Guys want to do what is right for you. The term insurance that we carry for people is 100% flexible. If you find the need for less in the future, we can change it. If you need to change some of it for permanent life insurance, that flexibility is built right in.
The term insurance we recommend is also renewable. That means, when your first 10 year term expires, your insurance doesn’t run out, you just get a new price structure for the next 10 year term and it is predetermined. The great thing about term insurance is that your insurance is guaranteed regardless of your health situation. If your health has deteriorated, you can still keep your insurance. If you have good health, The Benefit Guys can search the markets at that time and see if it is to your financial advantage to make a change, and it often is to your advantage.
Term insurance has a great place to cover temporary financial challenges. Permanent problems, like final expenses and taxes, are much better served using a permanent solution like traditional life insurance. If you would like a quote or have some questions you want answered, by all means complete the Client Data page and The Benefit Guys will get back to you by your preferred method of contact.
Please feel free to watch the short video below.