Who Needs Life Insurance?

Life insurance is designed to protect your family and other people who may depend on you for financial support. Life insurance pays a death benefit to the beneficiary of the life insurance policy.
Over the years, life insurance has also evolved to provide options for building wealth or tax-free investments.
Who Needs Life Insurance FAQ
Is life insurance only for people who have a family to support? When should you buy life insurance? We’ll go through these questions and common scenarios of when life insurance is a good idea to buy based on different situations. This list will help you decide if it’s time for you to contact your financial advisor and start looking at your life insurance options.

Why Is Term Life Insurance Less Expensive?
Term life insurance is a less expensive life insurance option and a good choice when you are on a budget because it is temporary and only pays a death benefit to beneficiaries of the policy if the insured dies during the limited term of the policy.
The risk is far less than whole life insurance or universal life policies, and therefore term life insurance is the least expensive option in the life insurance product line. Unlike whole life and universal life products, there are no cash values in the policy, so the premiums are purely for the life insurance death benefit, which also keeps the cost down. Term life is a no frills option that takes care of the basics : providing the money to your dependents in the event of your sudden death. Most people view it as an affordable and immediate life insurance option.

What Happens After Term Life Insurance Expires?
Once the term of the policy expires, you may not be able to purchase a new term life insurance policy at the lower rate you had become accustomed to because the new policy would be based on your age. The older you are the more expensive life insurance becomes.

If you become sick and your term life insurance expires you might have trouble getting a new term live insurance policy.
To avoid problems, consider the idea of adding an endorsement to your term life insurance policy that allows you to convert it to a whole life policy at the end of the term, or get a renewable policy. Your life insurance adviser should review these options with you.