Learn and Plan for Term Life Insurance

HOW MUCH COVERAGE DO YOU NEED?

One of the first things that needs to be done is to determine the amount of life insurance that you need. If you would like help with this, try using our life insurance calculator.

The amount of life insurance you should have depends on your particular situation. There are two primary factors to consider. The first is dependents: children, your spouse, relatives and others who may count on you for financial support. Second is your current financial situation: your assets and liabilities.

What kind of lifestyle do you want to provide for your family?

Would your non-working spouse have an income if you died?

Would your working spouse have to "retire" to raise your children if you died?

How would your death affect savings for your children's college expenses?

Do you have special needs to prepare for, such as a handicapped child or a child who will never be self-supporting?

How much will your family need for your final expenses? The average funeral in the U.S. is nearly $6,000.

Does your spouse have the resources to pay for expenses until Social Security benefits begin? If you qualify, it usually takes 3-6 months to begin receiving benefits.

Will your parents or other extended family members depend on your family's support in the future?

Does your divorce agreement stipulate that you keep a certain amount of life insurance for your ex-spouse?

Does your divorce agreement stipulate that you are responsible for your children's education?

Did you retain financial responsibility for your home?

Even if your divorce agreement doesn't require it, how much will you need to leave your children for their inheritance and to cover your part of their college costs?

Does your spouse have the resources to pay for expenses until Social Security benefits begin? If you qualify, it usually takes 3-6 months to begin receiving benefits.

Will your parents or other extended family members depend on your family's support in the future?

Has a relative co-signed on your mortgage or any other large loans?

Do you have any friends or relatives to whom you want to leave money?

Have you bought a house with a domestic partner, and have you agreed that each person's share of the mortgage is to be paid off upon his or her death?

Do you want to leave money to a charity or other nonprofit organization?

What are your current savings?

Do you have any current life insurance policies, life insurance provided by your employer, or veteran's insurance?

What other assets do you have that your family could sell or cash in to pay expenses after your death?

What Social Security and pension plan survivor's benefits will you receive?

Term life insurance is, by definition, temporary insurance. Each year, a premium is paid to cover the risk of death during that year. Term insurance has no cash value. The only way to collect from a term policy is to die during the term. If death occurs, the insurance company pays the face amount or "death benefit" to the beneficiary.

Many insurance companies offer level premium term insurance. This type of coverage has premiums that remain level for a period of 5, 10, 15, 20, 25 or even 30 years. These policies are inexpensive and can provide relatively long term coverage. Some level premium term policies contain a guarantee of level premiums, however some policies don't provide such guarantees. Without a guarantee, the insurance company can surprise you by raising your premiums, even during the time in which you expected your premiums to remain level. That's why, it's important to make sure that you understand the terms of any insurance policy you are considering.

Return of premium term insurance (ROP) is a relatively new type of coverage that generally combines low, term-like, premiums with a guaranteed refund of the premiums paid during the level term period, assuming the insured is still living at the end of the level term. These ROP plans are available in 15, 20, or 30-year term versions. Consumer interest in these plans has continued to grow each year, as they are often significantly less expensive than permanent types of insurance, yet, like many permanent plans, they still may offer cash surrender values if the insured doesn't pass away.

You are now ready to obtain a term life insurance quote from LifeSurances. Simply click here to fill out our quote request form online. We will ask you a series of questions regarding your health, lifestyle, and family history. The information obtained is used to determine a low cost product for you and your individual situation that best fits your life insurance needs.