There are different types of life insurance, but most people chose Term Life Insurance and here is why.
Term life insurance features:
- The lowest monthly cost.
- Simplicity. You pay the insurance company a premium every month and if you die during that month, they give your loved ones a check for the Death Benefit.
- You can buy it with a premium and death benefit that is locked in and guaranteed for up to 30 years so you can easily budget for it.
- The sooner you buy it the lower the premium you can lock in.
- Pays a lump sum tax free death benefit.
Purchasing term insurance to protect your family makes sense because, if you die unexpectedly, it will not matter what type of insurance you bought. The death benefit will be paid to your family. Since term insurance has the lowest cost, it means you can buy the most death benefit for the least amount of premium dollars. The more death benefit you have the more likely you’re your family will be ok financially if you die unexpectedly.