Reasons to Buy Life Term Insurance

How does term life insurance work?

If your wife and kids rely on your income right now, you really need term life insurance. It helps protect your family by replacing your income—which makes term life one of the most important parts of your financial game plan.

How much life insurance do I need?

Knowing how much life insurance to purchase isn’t complicated, but it does require some thoughts about your future. How much consumer debt do I have? What is my annual income? how many children do I have. As a quick rule of thumb, 10 times my annual income is a good starting point to consider.

Why is term better than whole life insurance?

Whole life insurance is grossly over priced and not recommended as a general rule of thumb. It often costs hundreds of dollars more a month and includes a “savings” plan with a terrible return. Instead, pay a fraction for term life insurance and save or invest what you would have paid for whole life insurance.

Reasons to Buy Life Term Insurance

1. To Protect My Family.

2. To Cover Children’s Expenses.

3. To Replace the Spouse’s Income.

4. To Pay Off Debts.

5. To Buy a Business Partner’s Shares.

6. To Pay Off Estate Taxes.