What Is Term Life Insurance?

 


What Is Term Life Insurance?

Term life insurance protects your family for a specific period of time, typically between 5 and 30 years. It’s intended to cover your financial obligations during a time when your family still relies on your income. For example, if you’re still paying off your mortgage or other debts, or if your family needs your income to cover their necessary expenses, term life insurance can give your family the resources to take over your financial responsibilities. 

For example, let’s say you still have $200,000 in mortgage debt that you won’t have paid off for another ten years. Your spouse may only be able to cover half of the mortgage payments with their income. A 10-year, $100,000 life insurance policy would help your spouse handle that obligation should you die during the term. Although, experts typically suggest purchasing policies that can cover at least 10 times your annual take-home pay. 

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