Term Life Insurance

Necessary, but no one likes to think about it
What would your family do if they were suddenly without you?  How would they pay the mortgage?

Much of the following information was take from AAA
http://www.aaacentral.com/insurance/KY/0911_life_enews.jsp?zip=40207&stateprov=ky&city=louisville


1)  With term life insurance, you pay a level premium to the insurance company for a limited period of time (usually 10 or 20 years)—the term. If you die during the term, your beneficiaries receive the death benefit.

2)  Term life insurance is also a good option for covering needs that will disappear in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.
3)  Level term life insurance allows you to lock in a guaranteed premium, usually for 10 to 30 years.  h other types of insurance your premiums can rise as you age.

4)  Term insurance is relatively inexpensive compared to other life insurance. So it allows individuals to afford more coverage, which they can use to help protect their families.

5)  Return of Premium (ROP) is a feature you can add to a term life insurance policy. If you live to the end of your term, all of the premiums you’ve paid are returned to you.  Adding the ROP feature can help provide the confidence of protection now and cash back later.
6)  Getting term life insurance coverage is simple. It starts with knowing how much you need and how long you will need it. The most important thing is to take action today to make sure your family is protected!

How much do you need?
Dave Ramsey recommends that you have 8-10 times your annual salary in Term Life insurance to make sure that financial needs are met in the event of your untimely death.  Avoid whole life and universal life policies.  The difference (savings) between the Term Insurance and the Whole Life Insurance premiums can (should)  be  invested to build wealth.