Is term life insurance worth it?
Let’s talk about term life insurance- pros and cons. Because you might be asking: is it right for me? Is it worth it? Now, obviously I can’t answer that for you because I don’t know your specific situation. I’m an advisor, and one of the things that I do is find out all the details that will help me make some good solid recommendations for you. But let me give you some information that will hopefully help you make the decision for yourself.
The first thing to remember about term coverage is that it’s temporary. So if you just need something in place for the next 20 or 30 years to get you through a period of time until maybe down the road you’re self-insured, or maybe you’ve got some better coverage kicking in, maybe through work or some retirement benefits, you may not need life insurance for the duration of your life. Term coverage is perfect, because it’ll save you a lot of money. You’ll pay a lot less on your premiums.
Term coverage can also have benefits in there that are not just associated with dying. So critical, chronic terminal illness riders, you can get accidental death riders, you can get waiver premium riders, children’s riders. There are a lot of riders you can add to your coverage that will enhance it in a lot of different ways. Living benefits can be immensely valuable because your most valuable asset is your ability to produce your income. In other words, your health. And statistically, you’re more likely to have a chronic, critical or terminal illness than you are to die.
How about an example
But let’s do it a financial example. If you had a term coverage for $50 a month, at the end of the year, you’re paying $600. At the end of 15 years, if you kept the policy that long, you would’ve paid in $9,000 total over 15 years. Now, $9,000 might sound like a lot of money. Spread out over 15 years, $50 a month. It’s not that much. But what it could potentially do for you is pay out 1, 2, 3, $400,000 to your family if you died. Is that worth it? That’s a question only you can answer.
The ugly truth about term
Now, here’s the ugly truth about term life insurance and you have to be okay with this. Statistically, there’s a high likelihood that it won’t pay out. But the trade off for that is that it’s a heck of a lot less expensive than whole life. So if you’d like to explore more about why term might be a good idea for you or why whole life might be a good idea for you, and ultimately is term life insurance worth it? Well, the best thing would be for us to schedule a quick chat. I’d be happy to help explore that for you, to empower you with the information that you need to make a decision you can feel good about.
Either way, life insurance has a lot of tools and the tools aren’t necessarily right for every situation. Every tool is valuable, but each one works in a specific situation. So let’s find out more about you and if term would be worth it.
Thanks. I hope this has been helpful and I’ll talk to you soon.