Term life insurance is the simplest form of insurance and the easiest to understand. The insurance covers you for a certain amount of time – called the term – and if you die in that period your family will get the proceeds of the policy. If you outlive the term of the policy, there is no payout. It is also the cheapest form of life insurance, making it good for certain people in certain situations. Keller Insurance services in West Deptford, NJ can help you determine if term insurance is a good for you.
The purpose of life insurance is to replace lost income, so the family will not have undue hardship as a result of a death. Stay at home parents may also benefit with a policy covering the years when the children are young. Term policies can also be tied to a mortgage, so you family will not be forced to move out because they can no longer afford the mortgage payments if you are gone.
There are also permanent life insurance policies and whole life policies that grow in value and pay you back at some point, with interest. These are benefits involving estate planning, while a term insurance policy is more focused just on a specific period of time. This could be a time when you or a member of your family is vulnerable and would be in a great hardship if you were to die.
Another way you might use term life insurance is if you are in a business partnership, and you and your business would be in deep trouble if one of you died.
Contact Keller Insurance services in West Deptford, NJ, to find out how you might be able to benefit from a term life insurance policy, or any other type of life insurance policy.