Life insurance is a way to protect your family in the event of your death. The money your beneficiaries receive can be used to help pay your final expenses, take care of debt and cover the mortgage or rent.
Term life insurance provides protection for a specific period of time or term. It is most often sold in -10,-15, -20 and - 30-year terms. The premium stays the same throughout the term. If the insured person dies during this period, the beneficiaries receive the proceeds income tax-free. At the end of each term, the insured may renew the policy (generally at a higher cost) up to age 95.
Advantages and disadvantages of term life insurance
Term life insurance can provide essential protection for your family. It is less expensive than other life insurance options.
The downside of term life insurance is that it isn't a permanent life insurance solution. Once the term ends, the coverage ends or the premiums increase dramatically. And, the older you are, the more expensive it gets.
Fortunately, you can convert many term life insurance policies to a permanent insurance product such as whole life insurance, universal life insurance or variable universal life insurance.
If you want to purchase another policy after your term ends, you may have to show evidence of good health to purchase continued protection. An annual renewable term policy may not require this, but your premiums may increase each year.
Keep in mind that as your life changes (for example, marriage, birth of a child or a job promotion), so will your life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges including costs of insurance that vary based on the insured person's gender, health and age. There are additional charges for riders that customize a policy to fit your individual needs.
There are so many things competing for your time and resources these days, that purchasing life insurance can seem like something that can wait.
But, life is full of uncertainties. While you can't stop them from happening, can help protect your family if they do. It helps make the process of getting affordable, temporary protection quicker and easier so you can get back to the really important stuff in your life.
Be sure to choose a life insurance policy that meets your long-term life insurance needs. If your personal situation changes — for example, you get married, have a child or get a job promotion — make sure the policy continues to meet your needs. You should also weigh the costs of the policy before making a purchase. Life insurance has fees and charges that vary based on your sex, health, age and smoking status. Riders that customize a policy to fit your individual needs usually carry an additional charge. Protections and guarantees are subject to the claims- paying ability of the issuing life insurance company.
Anyone with people who are financially dependent on them can be a good candidate for life insurance, including:
10 times your gross annual salary
The general rule of thumb often used when explaining life insurance needs. You may need more or less coverage based on your specific situation, so talk Jo your insurance professional about completing a personal needs assessment.
Whether you’re concerned about your family being able to make the house payment or ensuring that your plans for the future become a reality, Term Life Insurance can provide an affordable solution to your needs. It offers:
Your rates are guaranteed not to increase for the entire length of the term you select — 10,15, 20 or 30 years. Once the policy term is over, your premiums will increase annually.
Protection that’s quick and easy
The simple underwriting process and noninvasive medical requirements (available for certain ages and policy amounts) offered by Nationwide YourLife Guaranteed Level Term enable you to get the protection you need without all the hassle normally associated with purchasing life insurance.
Your family receives an income tax-free death benefit that they can use to meet their immediate and future expenses. The death benefit may also be estate tax-free, if properly structured.