Plymouth Insurance Agent | Term Life Insurance Basics

Today your Plymouth insurance agent will be talking about the basics of term life insurance. Term life insurance is a type of life insurance that simply stated lasts for a certain term or number of years. What that looks like is you find the number that you want to have for life insurance, whether that be $100,000, $300,000, $1 million or any other amount based on your personal leads. You look at how many years you would want your term life insurance policy to last for. For example, say you have a mortgage that you just got and it’s 30 years long. So you’re looking at it in these terms based off of your mortgage amount, um, and how long that will last. And you want protection based on that value and that length of year. So being that it’s a 30 year mortgage, you might say, okay, I want to get an insurance policy that’s going to cover me for the length of my mortgage.

What your Plymouth insurance agent would do is help you find a term life insurance policy that would last for 30 years and then find the amount that you need and then that policy, once it’s approved and you go through the process of getting it approved is in place. It will last for 30 years from the date that it is effective. So what that means is you’ll have that a life insurance policy for the 30 years and at the end of that 30 years it will expire. Some of the key features that come along with term life insurance is affordability. Your term life insurance policies are going to be the most inexpensive type of life insurance. 99% of them will have a level payment for the premium throughout the entire term of the policy. The policy premium won’t increase over time. It’s a level payment for the life of the policy, and you will just pay the same amount for whatever number of years that you selected. Like in our previous example for 30 years and once it expires, it’s no longer in effect and you no longer have that coverage. What that does mean though is that once you reach that 30 years, you do not have life insurance for that amount that you previously had. So it does require you to have some planning planning and to really look at the numbers and finance goals and things that you need to focus on before you go ahead and purchase that term insurance policy.

Another way your Plymouth insurance agent uses term life insurance is by getting multiple policies covering certain lengths of years needed by the client. This is only possible because of the affordability for term life insurance. So you may have some debt or some sort of financial obligation that only lasts say 10 years. So you may get a life insurance policy taken out for 10 years to cover that expense for that debt. And then after that debt expires and your term life insurance expires around the same time, you would have been protected for those number of years for that sort of debt. So not only can term life insurance be used as a very powerful tool to protect you for a large number of years, like 30 or 35 years. It can also be used on a shorter term, um, so that you can protect yourself for maybe some specific debts or obligations in your finances that do have an expiration date and that after that expiration date, you no longer need the life insurance at the amount that is higher than what you want for your total finances and your long term life insurance protection goals. What most people find with term life insurance is that it’s simple, it’s the most affordable type of life insurance, and that the, the process can be a lot more simple in finding the life insurance because of the simplicity of the policy itself and the way that it works.

Your Plymouth insurance agent knows that when it comes to life insurance, there’s no one size fits all rule, because everybody’s finances are always going to be slightly different and people also have other financial goals and other things in their lives that will change the circumstances. So term life insurance, although it is good for almost everyone, is not always the best option, but it is a type of life insurance that everyone should take a look at when they’re purchasing life insurance because of the affordability, the simplicity of the policy and the ease of use and the many uses of term life insurance. That key can be incorporated into your insurance portfolio. That will really get you a very good protection for the number of dollars that you are spending.

EnviZion Insurance always takes the next step and goes the extra mile to make sure every insurance decision a client makes is a quality one that will help better protect them. We know that each of our clients has important people and things in their lives that need ultimate protection from financial losses. Life insurance is one of the top ways to protect your family from financial hardship due to the loss of an income. We feel proud to serve you and our community with sound life insurance advice. The experience of your Plymouth insurance agent will help you discern which type of life insurance policy fits your needs, and for many people term life insurance is a great option because of its simplicity and affordability. We would love to help you find the right life insurance for you and your family!  If you have any questions for your Plymouth insurance agent or to find out how to get life insurance please contact us at, 612-354-6496. Another way to get in touch with us is through our website. On our website you can click on the Contact icon on the top right and fill out a form to get into contact with one of our experienced insurance agents.