Why Get Life Insurance

Should You Buy Term Life Insurance?

This article discusses some of the differences between term life insurance and permanent life insurance. Consider these things when deciding which one to buy to ensure you get enough coverage.

Term Insurance Coverage

For many, life insurance can feel like just another expense - until you really need it. But even if you have a budget that doesn't budge, term life insurance can be a cost-effective solution to get the insurance coverage you need now at an affordable price.

Term Life Insurance Quotes - A Good Place to Start

Begin by asking yourself whether your family would have enough to live on, pay off debts (including a mortgage and funeral expenses), and pay for costs to raise and educate your children if you were gone. Remember that when you die, your paycheck stops, leaving a significant difference between your expenses and assets. Fortunately, this is where term life insurance can help fill the gap.

Try using an online life insurance calculator to get an estimate of the amount of term insurance you might need, or consult with a qualified life insurance agent for help. Buy the longest term you can afford to ensure that you have coverage for as long as you might need it. Also, consider adding policy riders that will allow you to affordably add coverage at a later date or even convert a portion of your term policy into a permanent policy (such as whole life or universal life).

What is the difference between term and permanent life insurance

Both term and permanent policies allow you to select an amount of coverage and lock in a monthly payment over the life of the policy, providing a lump sum payment to your beneficiaries when you die. Permanent policies earn cash value and remain in force as long as premiums are paid. Coverage with a term policy lasts only for a specific time period (often offered at 10-, 20-, or 30-year terms), with no cash value accruing. Once the term is over, the policy coverage (and premiums) will end.

Term Life is a very affordable interim solution

People often delay purchasing life insurance because they think it is more than their budget can handle, and they often overestimate how much it will cost. However, term life can be an affordable way to get the coverage you need - today.

Things to consider

  • At the beginning, permanent life premiums are typically higher than term life premiums, making term an affordable option to get a policy in place. But remember, term life comes with an expiration date!
  • People who find a permanent policy more appealing often buy less coverage than they need, leaving them underinsured. Consider a combination of a permanent and term life policy to get the coverage you need, or a term policy rider that allows you to convert a portion of your term policy into a permanent policy at a later date.*
  • Term life premiums are at an all-time low, making it an affordable option for almost any family.

Getting the coverage you need … today

As you age, it gets more expensive to buy life insurance. Moreover, certain health conditions can make premiums increase - or worse, make it difficult to qualify for life insurance coverage at all. For the same price of a weekly specialty coffee drink, you'd be surprised at how much term coverage you can easily afford.

*Not all term policies or life insurance companies offer a conversion rider.

For more information on types of life insurance, visit our learning center.

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Protective Life insurance Company and its subsidiaries do not currently offer Term Life Insurance products.

This article is a high-level summary of things to consider when purchasing life insurance. The information presented is for information and educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective or its subsidiaries.

Neither Protective life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective life and its products and services, visit www.protective.com.

Should You Buy Term Life Insurance?

Often insurance needs change as people grow older. While buying term life insurance is often associated with younger adults, today people may work longer and live longer. This alters the equation of how much coverage may be needed to meet coverage needs. Whether you seek to cover final expenses or desire to create an estate for your family, there are many options to consider when exploring life insurance. This article highlights a few ways term life insurance might be an option for helping you achieve your goals. For more information, visit our visit our learning center.