If anyone depends on your income right now, you need term life insurance. It protects your family by replacing your income—which makes term life one of the most important parts of your financial game plan.
Three Main areas to consider when it comes to coverage
- Financial income protection for your children.
- Mortgage and Debts
- Retirement – often many people forget this. If you pass away before your retirement plan is funded it will make it harder for your spouse or loved ones left behind.
How much life insurance do I need?
Dave Ramsey recommends 10–15 times your yearly income in term life insurance. When that money is invested well, your family can live comfortably on the return of that investment. The goal of term life insurance is to get you from your current age to retirement. There are multiple options to choose from for term length. (i.e. 10, 20, 30 years)
Why is term better than whole life insurance?
Whole life insurance is a rip-off! It often costs hundreds of dollars more a month and includes a “savings” plan with a terrible return. Instead, pay a fraction for term life insurance and save or invest what you would have paid for whole life insurance.
An additional benefit to term life insurance is Living Benefits. A few companies include living benefits which offer accelerated death benefits to your policy. Term life insurance with living benefits can keep you from going broke paying out for long-term care and medical bills. Plus it is affordable!
The Accelerated Death Benefit Riders Cover Three Types of Illnesses:
- Terminal Illness – provides for the payment of an accelerated benefit if an eligible insured has an illness or chronic condition that is expected to result in Death Within 24 Months.
- Critical Illness – provides for the payment of an accelerated benefit if an eligible insured experiences a critical illness. Covered critical illness includes 12-16 different illnesses depending on state and company used.
- Chronic Illness – provides for the payment of an accelerated benefit if an eligible insured is unable to perform two out of six activities of daily living (2 of 6 ADLs) or experiences severe cognitive impairment.