Term life insurance can provide financial security to your family members for a specific time period. Though it is one of the most basic types of life insurance, it is essential to figure out the time period for which you need to get the policy. Make sure you research thoroughly and compare various plans before making the final decision.
Listed below are factors that can help you in choosing the right duration for term life insurance:
- Choose a policy longer than you need: Remember that term life insurance can be cancelled at any point of time without any extra cost. Therefore, you should opt for a term longer than that you require. This will reduce any sort of risk in case you require coverage for a longer time period. If not, you can cancel the policy any time.
- Consider the duration of the mortgage: Financial liabilities such as home mortgages and loans have to be cleared within a specific time period. The term of your life insurance should be in accordance with this interval. In the event of death or severe injury of the earning member of the family, the debts can be paid off with the insurance amount.
- Know the purpose: It is important to know the purpose of buying life insurance. If you are looking to secure your child’s education, decide the term of the life insurance accordingly. You can also choose a term life insurance to ensure financial protection after your retirement. However, you need to calculate the retirement period before buying the policy.
- Affordability: Analyze your financial requirements to make sure you are able to pay the premium amount. If you opt for a longer term, the premium will be higher. So, make sure you choose the duration of the term life insurance accordingly. You can opt for monthly, quarterly, annually or semi-annually premiums as per your convenience.
- Other factors: There are many other factors which should be considered before choosing a term life insurance. If you have many unpaid small debts or want to leave inheritance for your children, make sure you buy the insurance plan with relevant time period.
We, at Smith-Reagan Insurance Agency, offer a wide range of life insurance plans to the clients in McAllen, TX. For more information about the coverage options, you can call us at (956) 399 – 1353 or visit our office at 148 N. Sam Houston Blvd, San Benito, TX 78586.