3 times term life insurance is worth it

Life insurance provides vital financial protection for both policyholders and the people who depend on them. In return for a moderate fee to a provider each month (frequently discounted if paid on an annual basis), account holders can secure coverage for hundreds of thousands of dollars or even more than $1 million. 

There are multiple types of life insurance to choose from with term life being one of the more popular kinds. Unlike whole life insurance, which lasts for the duration of the insured’s life, term life insurance will expire after a pre-determined time period (hence the name term). It also won’t come with a cash reserve that can be utilized while the policyholder is still alive. There are, however, multiple benefits to term life insurance that make it valuable for both young and older policyholders.

If you’re in the market for life insurance then start by getting a free price quote to learn more.

3 times term life insurance is worth it

Here are three instances when term life insurance is worth getting.

When you’re on a budget

Term life insurance is generally the least expensive type of life insurance on the market, making it an attractive option for those who want the protection life insurance offers but don’t want to break the bank to get it. Term life insurance costs vary based on the health of the applicant, their age, occupation and other factors. That said, many people can secure a robust term life insurance policy for less than $100 a month. 

Get a free term life insurance price estimate here now to see how much it would cost you.

When you have short-term needs

Term life insurance can be especially valuable to have when you have short-term financial needs. Perhaps you want coverage until your children have finished school and their tuition is paid off. In this instance, a term policy may be better than a whole policy. Similarly, if you will be financially stable in the near future but aren’t quite there yet, then a term policy could be valuable. And if you need life insurance to protect your small business – but are planning to retire in the upcoming years – then term life insurance could be worth securing to help bridge the gap.

When you have a mortgage

You don’t necessarily need term life insurance if you have a mortgage. But if you want to make sure that payments can be covered in your absence – and there are multiple payments to go until it’s paid in full – then a term life insurance policy is worth it for you. Remember, term life insurance will only last for a set term before you have to renew, making it an optimal type of life insurance for those with outstanding mortgage balances. Confirm the mortgage balance you currently owe and find out the amount of time your bank expects you to pay it off. Then apply for a term life insurance policy in that amount (or slightly higher to be safe) and time frame.

Get a term life insurance quote here now and start crunching the numbers.

The bottom line

Term life insurance can be valuable at multiple times. It’s particularly worth having when you’re on a tight budget and can only afford minimal protections. It’s also helpful to have when you have short-term financial needs with a clear end goal in sight. And for many homeowners, it can be a smart way to cover their remaining mortgage payments, too.