- Keep paying the home mortgage.
- Maintain their current standard of living.
- Pay off debts, estate taxes, and final expenses.
- Create a fund for college education.
- Create a fund for a family member with special needs.
- Protect their dreams for the future.
Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. Typically, premiums are level and guaranteed for that time. After that period, policies may offer continued coverage, usually at a substantially higher premium rate. Term life insurance is generally a less costly option than permanent life insurance.
Needs it helps meet: Term life insurance proceeds are most often used to replace lost potential income during working years. This can provide a general safety net for your beneficiaries and can also help ensure the family's financial goals will still be met—goals like paying off a mortgage, keeping a business running, and paying for college.