Term Life Insurance
Term life insurance
is a pure form of
life insurance protection because it builds no
cash value. This is in contrast to permanent life
insurance such as whole life, universal life, and
variable universal life.
Term life insurance
is temporary, and it covers only a specific
period of time (i.e. 10yrs, 20yrs etc.). If the
insured dies during the term the death benefit will be
paid to the beneficiary. Because the term expires the
insurer often does not have to pay out making term
life insurance the most inexpensive way to
purchase a substantial death benefit on a coverage per
premium dollar basis.
How much life insurance do I need?
Rough "rules of thumb" suggest that you should own
life insurance equal to 6 to 8 times your annual
earnings. However, each individuals financial
situation is different and their corresponding life
insurance needs may vary as well.
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