Term life insurance is “pure” life insurance. The policyholder pays premiums regularly. If they die while the policy is in effect, their beneficiary (or beneficiaries) receives a death benefit.
It’s very straightforward, which is the selling point for people who want a simple life insurance option.The key definition when it comes to term life is the term – how long the policy is active. Term life policies expire after a set number of years, making it a good policy for anyone who expects to build wealth over time and won’t need the financial safety net life insurance provides later in life.
But the term limit also limits coverage. If you still need that financial safety net when you’re in your 60s or 70s, you’ll need to shop for a new policy (which may be prohibitively expensive).Term life insurance is also relatively inexpensive. Because there aren’t any additional fees or maintenance, it’s much more affordable than whole life.
At Withrow Insurance we are proud to partner with major Life Insurance companies, to help find the right term policy for you and your loved ones. Have some questions or maybe want a quote, reach out today!