No one ever wants to think about life insurance
. But when it comes to protecting your family should tragedy strike, an extra $20 to $60 a month is likely worth it.
Term life insurance, unlike permanent life insurance, provides coverage for a fixed amount of time, usually 10, 20, or 30 years, and it's cheaper than other life insurance options, making it affordable for young people, especially young parents,The biggest draw of term life insurance policies is the low monthly payments, which are determined by the insurance company after evaluating a person's age, gender, health, and sometimes driving record, job, hobbies, and whether or not a person...
Let's say he takes out 30-year policy worth $250,000. That means the policy is set to expire when he's 60, if it's not paid out before then., his monthly payment would be $20. On a policy worth $1 million, his monthly payments would be $60. If he died at age 35, the family would receive the full cash payout . The payments are usually made with after-tax dollars, so the payout will be tax-free.
Some insurers also give the option to convert term life insurance into permanent life insurance through an addendum called a. If you want to continue receiving coverage beyond the fixed term, a term conversion rider added to the policy at the outset will allow you to keep your coverage, without the hassle of a new medical exam or applying for a new policy,Other riders, for long-term care, critical illnesses, or the death of a child can be added to a term life insurance policy.
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