Term Life Insurance Policy
Reader’s Question:
My wife and I are genuinely considering getting life insurance here in Florida so that my family won’t have to worry about funeral costs when I die. A friend of mine has a term life insurance policy and I just need to know what it means. What is the definition of term life insurance and who needs to have it?
Cale
Coral Springs, FL
Many are still confused as to what the term life insurance definition is. To begin with, term life insurance only lasts for a specific time frame stipulated on the policy. Normally, the policyholder chooses a term period for one, five, 10 or 30 years. If the policyholder passes on within the term of the life insurance policy, his/her beneficiaries will receive death benefits. Some of the available term life insurance policies are renewable and can be converted into whole life insurance which will last for as long as the policyholder lives.
Term life insurance has the lowest rates among the available life insurance plans in the market. The premiums would be calculated based on the age of the applicant, health, the amount of coverage needed, etc.
If you have young children, term life insurance policy is your best bet for your coverage. As your children grow, you would also have fewer obligations, thus you will have the chance to save money for funeral costs after the term life insurance expires, preventing the need to extend it or convert it into a whole life insurance. If you are the breadwinner of your family, you really have to consider getting a term life insurance plan so that you can be financially secured. If hope the term life insurance definition is already clear to you and you are now ready to decide the kind of life insurance you will get there in Florida.
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