Your family depends on you for personal and financial support. Term life insurance is one way you can protect them should you suddenly pass away due to an accident or illness. It’s important to understand how term life insurance works and the pros and cons of keeping this type of protection in place.

At Christensen Insurance, in Susanville, California, we have pulled together some of the basic facts about term life insurance so you can make an informed decision about whether you should purchase this type of insurance.

When a person dies, his or her estate is subject to both state and federal taxes. Life insurance proceeds are not taxed and the money becomes available to your loved ones immediately.

1. Term life insurance proceeds are paid out at once. After death, an estate must go through probate. This can be a lengthy process, and financial support will be needed immediately. Term life insurance pays out quickly and doesn’t leave your family struggling with financial difficulties.
2. Many term life insurance policies can be converted to a whole life policy later. Insurance companies often allow a term life insurance customer to convert a term life policy to a whole life policy. This can be a great option as your income increases, as the money you pay into a whole life policy is an asset – a method to save for the future.
3. Term life insurance is affordable. The major advantage of term insurance is that it is affordable. The younger you are when you put it in place, the lower the cost.
4. Your term life insurance can allow your spouse to pay off a home mortgage and other obligations. The last thing you want to leave your husband or wife dealing with is being forced to move out of the family home because they’re left without enough funds to keep up with a mortgage. With careful planning, your term life insurance policy can pay off all of the debt and provide for your spouse and children for many years into the future.
5. Some policies will allow you to renew your term life insurance policy at the end of the term. When you pay for term life insurance, the “term” is the length of time that you can keep the policy in place, usually 10 years, for the agreed upon monthly payments. Some policies are renewable if you have remained in good health, although the premiums may be higher on the new policy.

Term life insurance is often the best choice for young families, as they are in good health, and the payments are affordable. We can speak with you about the types of policies available and find the right policy at the best price for you. Generally, we will be searching out the highest policy limits for the lowest price. We know your bottom line matters, and we do everything possible to find the best deal that matches your finances. Call us and let’s talk about it. We are ready to help you get the facts you need to make a smart decision. As we are all local to Susanville, we are easy to reach and can meet with you off work hours if needed. Call us!