Reader’s Question:

I just recently moved to Dallas, TX for a new job. I’m looking to get life insurance so my family is protected just in case. Would you recommend I buy a term life insurance policy?

Shinelle

Dallas, TX

Good question. There are a few things you want to remember when buying term insurance (or any kind of life insurance in general). Term life insurance is a great kind of life policy and comes with many advantages. However, term life insurance is not always necessarily the best or the right kind of life insurance for everyone.

So what is Term Life Insurance?

This is a temporary kind of life coverage, only meant to be enforced for a certain period of time. Although most insurers nowadays allow you to renew your coverage, rates would most probably be more expensive by that time. However, if you just need life coverage while raising a family or while paying financial obligations like mortgage, then term life insurance is an excellent choice.

One of the reasons why this type of life cover is popular is because it’s very affordable. Compare to whole life or universal life insurance plans you get to have huge coverage amounts (the “Face Value” of you policy) for comparatively cheaper rates. You can pick coverage periods ranging from 10, 15, 20 to even 30-year terms. You only pay for pure coverage so there are no sophisticated interest-earning cash-value options to think about.

So Should You Buy Term Life Insurance?

If what you are looking for in a life insurance policy matches those mentioned above, definitely consider buying term life insurance coverage. If you are looking for something else, know that term insurance is not the only type of life cover available.