First of all, it’s important to know what term insurance really is.
As the name implies, term life insurance is life insurance that provides coverage for a limited or fixed period of time, or term. The rate is also fixed for this term as well, and after the term expires, coverage at that rate is no longer guaranteed. So, the insured then must either forgo coverage, or potentially obtain new coverage with a different payment and begin a new term. Of course, if the insured dies during the term of the policy, the death benefit is paid to the beneficiary.
Because it is a relatively inexpensive form of insurance, term life insurance can be a cost-effective way to cover costs for loved ones left behind and should be an integral part of your financial planning. It can be used to cover costs like:
- funeral expenses
- a mortgage
- credit card debt
- medical expenses
- household expense
- college costs
Naturally, replacing the departed wage earner’s income is a common use for term life insurance, too.
When buying term insurance, you must first choose how long you need it and how much coverage you want. Is it for the length of your mortgage? Until your children go off to college? Until you finish college and get your first job? There are lots of options as to the length of the term and you can typically select from a 10-, 15-, 20- or 30-year plan for protection.
The payments remain level every year for the length of the plan you select.
Two choices from Erie Family Life Insurance Company are cost-effective and simple to understand.
ERIE LifeSense® Term Life makes it easy to get up to $90,000 worth of life insurance coverage in about 15 minutes. There’s no medical exam or complicated forms to fill out. In fact, it is a simple application with only a few medical questions. You can select a 5-, 10-, 15- or 20-year plan to protect you. It can be the perfect way for part-time employees, entrepreneurs, first-time life insurance buyers, stay-at-home caregivers and others to get the essential coverage they know they should have quickly and easily.
Level Term insurance provides life insurance for the period of time that best suits your needs. You can select from a. Coverage can be purchased starting at age 0, and the face amount of the policy and payments remain level for the period of time you select. If you should die during the defined term, the proceeds would be paid to the named beneficiary. You’ll also have the opportunity to convert your term policy to a permanent life plan. We guarantee this conversion privilege regardless of health, occupation or hobbies.
Term life insurance is one way to help protect your family and give yourself peace of mind. Find out more about it at Erie LifeSense. Life insurance is too important to put off.