Is Term Life Insurance for You?

Is Term Life Insurance for You?

Term insurance is the simplest form of life insurance. It provides temporary life insurance protection on a limited budget. Here’s how it works:

When a policyholder buys term insurance, he or she buys coverage for a specific period and pays a specific price for that coverage.

If the policyholder dies during that time, his or her beneficiaries receive the benefit from the policy. If he or she outlives the term of the policy, it is no longer in effect. The person would have to reapply to receive any future benefit.

Unlike permanent insurance, term insurance only pays a death benefit. That’s one of the reasons term insurance tends to be less expensive than permanent insurance.

Many find term life insurance useful for covering specific financial responsibilities if they were to die unexpectedly. Term life insurance is often used to provide funds to cover:

·      Dependent care

·      College education for dependents

·      Mortgages

Would term life insurance be the best coverage for you and your family? That depends on your unique goals, needs, and circumstances. You may want to carefully examine the pros and cons of each type of life insurance before deciding what type of policy will be the best fit for you.

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Bradley Bofford currently resides in Mahwah with his wife, Lauren, and their two daughters.  Bradley can be contacted at BHBofford@FinancialPrinciples.com or at 973-582-1002.

Securities offered through Securities America, Inc., member FINRA/SIPC, Bradley H. Bofford, CLU, ChFC, CFP® Registered Representative and Advisory services offered through Securities America Advisors, Inc., Bradley H. Bofford, CLU, ChFC, CFP®, Investment Advisor Representative. Financial Principles, LLC and the Securities America companies are not affiliated. Copyright 2013 FMG Suite.