One of the most basic policies is Term life insurance, which is often the choice of families on a budget when their modest financial plan is just getting underway. As the most affordable life insurance option, Term life lets you select the length of the policy period, typically as few as five years or up to age 65. The policy is often used for the most basic of reasons—to provide income for dependents in the event of the early death of the primary breadwinner in the family. In that eventuality, the policy benefits can be used to pay off the mortgage on the family home, fund the children’s college, or other major expense. Alternatively, the benefits can be placed in a trust for beneficiaries, helping to ensure the funds are available for use over a long period of time.
Some Term life policies allow for the coverage amount to be increased periodically during the life of the policy. In contrast, others have a built-in decline in benefits over the years as the insured grows older. The cost of the policy is affected by either option, so we’ll be happy to provide you with a cost comparison to weigh the pros and cons of each.