Life has a knack for throwing us curveballs — buying a new home, welcoming a child, or switching jobs. These major life events often lead us to reassess our financial priorities, and understandably so. Among the key considerations in this context is life insurance, specifically term life insurance, which can be a straightforward and affordable way to safeguard your family’s financial future.

What is Term Life Insurance?

Term life insurance is one of the simplest and most affordable forms of life insurance. It allows policyholders to select a term length, such as 10, 20, or 30 years, and a coverage amount. If you pass away during this term, your loved ones receive a tax-free payout or death benefit. This financial safety net can serve numerous purposes.

Practical Uses for Payouts

The death benefit can cover a range of crucial expenses. Whether it's mortgage payments, funeral costs, living expenses, or college tuition for your children, the payout provides essential financial support when it's needed most.

Understanding Policy Options

There are various types of term policies to consider:

• Level Term: Both premiums and the death benefit remain constant, offering stability over the policy's duration.
• Yearly Renewable Term: Although premiums increase with age, coverage renews annually, making it an option for those considering short-term needs.
• Decreasing Term: Often paired with a mortgage, the death benefit decreases over time while premiums stay the same.

Additional Features: What to Look For

Several features can enhance your policy:

• Return-of-Premium Rider: Although more costly, this option refunds your premiums if you survive the term.
• Convertible Term: This feature allows you to switch to permanent life insurance coverage later, without undergoing a medical exam.

Why Act Now?

With 102 million U.S. adults having no or insufficient life insurance, there’s a pressing need for awareness. Rates are on the rise, particularly for older buyers, making it prudent to act sooner rather than later. Interestingly, 72% of Americans overestimate term life insurance costs, which often leads to unnecessary delays in securing coverage.

Reassessing Existing Coverage

If life changes significantly — new debt, additional children or caregiving duties, loss of employer coverage, or a substantial income change — it might be time to reassess your coverage. Instead of canceling existing policies, consider layering coverage to adapt to your evolving needs and to lock in lower premiums while younger.

Empowering Your Financial Future

Life is anything but static, and neither should your insurance coverage be. Small steps today can secure peace of mind tomorrow. Assess your current situation, get a personalized quote, or speak with a licensed insurance advisor to explore the term life insurance options tailored to your needs.