Term Life Insurance
Protecting your family's financial future.
What Is Term Life Insurance?
Unfortunately, life is unpredictable. We prepare and we plan, and sometimes the worst still happens. At Adroit Health Group, we know that term life insurance is an option that can help you prepare for the unexpected.
Think of it as insurance for your family's financial future. Term life insurance provides a pre-defined payout over a fixed term in case you or your spouse passes away prematurely. This payout can be used to cover any number of expenses.
Term life insurance is a basic protection that can change your family's future. Unfortunately, up to 30% of U.S. households have no life insurance coverage. That means 11 million households with children under 18 have no coverage if the worst happens.
Here's an example: You and your spouse have two-year-old twins. On top of your husband's student loans, you just bought a house. You and your husband both work full-time and so you also pay for childcare during the week. In 16 years, you plan to pay for your twin's college tuition.
In this example, how would your family cover these expenses? Would one salary cover your mortgage? Childcare? Would there be enough in savings for college tuition? Would your family be able to live comfortably on a single salary?
These are difficult questions to consider, but they're important.
A family is a responsibility. It will be years before children live on their own. Term life insurance is a low-cost way to protect your family while you're managing multiple expenses, planning for college and retirement, and paying down debt.
If the worst happened, a term life insurance could provide peace of mind during a devastating time.
At Adroit Health Group, we know that term life insurance can help protect your family's financial future. We provide a number of options that are underwritten by LifeShield National Insurance Co. To explore how term life insurance could help your family, contact us today for more information.
How Does A Term Life Insurance Policy Work?
Term life insurance policies are straightforward and affordable. This makes them a practical option for many younger families.
If you or your spouse passes away, your family receives a pre-defined payout. This is called a "death benefit." Unlike traditional whole life insurance, these are "term" life insurance policies. They are set for a pre-defined term. The most common terms are 10, 20, or 30 years. Generally, your monthly payment (or "premium") stays the same throughout this term.
If your family receives a payout, they can use it to pay for any number of expenses. Term life insurance payouts can cover:
- Rent or mortgage payments
- Living expenses
- Medical care
- Funeral costs
- Education expenses, include college tuition
When you purchase a plan, you decide on the term and payout. Later, we'll discuss how you can calculate the best terms and payouts for your family.
What is the difference between term and whole life insurance?
Many people confuse term vs. whole life insurance. Term life insurance is temporary and has an end date. Whole life insurance provides lifelong coverage.
In the best-case scenario, you're supposed to outlive your term life insurance. Because term life insurance is meant to cover only a certain period of time, it's often a fraction of the cost of whole life insurance. It's typically the least expensive way to purchase a substantial death benefit over a specific period of time.
Usually, parents with younger families purchase term life insurance to protect their family's financial future. If they unexpectedly passed away, their family would need help with the mortgage and other expenses. Term life insurance can cover these costs. Once families reach a certain age, when the mortgage is paid off and children are finished with college, they have less of a need for term life insurance.
Whole life insurance is a bit different. It's the type of life insurance you're probably most familiar with.
Instead of a defined term, you have a guaranteed death benefit. There's an investment component, too. This means your policy has a direct cash value that grows slowly over time. You have a guaranteed rate of investment over time. And, the money is tax-deferred so you don't pay taxes while the value accumulates.
Term life insurance is a low-cost option that works for many families. However, you may want to consider whole life insurance if you:
- Have a lifelong dependent, like a child with special needs
- Want to provide money to your heirs to offset estate taxes
- Wish to spend your retirement savings, but still ensure your heirs receive an inheritance
To learn more about the differences between term vs. whole life insurance, give us a call at 1-800-269-3563 or send us an email. The Adroit Health Group team is happy to assist and connect you with resources to help you explore which options will work for your family.
How Much Term Life Insurance Do I Need?
Figuring out your family's life insurance needs is personal. And, it depends on a lot of factors. These may include your:
- Current debt, including student loans
- Cost and length of your mortgage
- Annual income
- Childcare and education costs
- Your children's ages
Most experts, though, recommend purchasing a plan with a payout that's ten times your annual income. Also, plan to buy term life insurance policies for stay-at-home parents, too.
A payout that's ten times your current income covers ongoing costs for a number of years while your family figures out how to move forward after a loss. It also allows them to stay in your home during an already painful time.
While the payout amount is fairly straightforward, you also have to figure out how long of a term you want to purchase. Most are 10, 15, 20, or 30 years long. Consider the length of your mortgage and how old your kids are.
Consider this example: You're a single mother with a five-year-old son. You just signed a 15-year mortgage on a $350,000 house. You're the sole financial provider for the family, but your retired mother lives with you and helps out with childcare while you're at work. If you suddenly passed away, your mother would care for your son. But, would she be able to save up enough for college? How would she handle your debt? Would they have to move?
In this case, you'd likely want to look into a 20-year term. This would provide peace of mind until your son was living on his own. It would also cover the length of your mortgage.
How Much Does Term Life Insurance Cost?
Term life insurance is a surprisingly inexpensive option for many families. Since it's temporary and often isn't paid out, the rates are up to ten times lower than traditional whole life insurance.
Likely for less than $100 per month, you could protect your family's financial future.
Your monthly premiums will depend on a number of factors, including:
- The length of your term
- The amount of your payout
- Your age
- Where you live
You should buy term life insurance sooner rather than later. Rates do go up with age since we have a higher risk of health issues as we get older. It also means your family doesn't have protection during the most vulnerable times when savings are likely low.
To get term life insurance quotes for your family, contact us today at Adroit Health Group. We can calculate the amounts you'll need for your family's unique situation. We'll find the most affordable level of protection that works for you. Our customer service team is always here to help you learn more about your term life insurance options.
I Have Term Life Insurance Through Work. Isn’t That Enough?
Many companies offer whole life insurance plans. These aren't the same and are a bit more complicated than term life options.
Further, many employer-sponsored plans only cover one-time or double your annual salary. Consider how quickly one year of your salary would go if it had to cover funeral costs, mortgage payments, childcare, and tuition down the line. As the experts suggest, a safer number is ten times your annual salary.
And, term life insurance plans are portable. That means you can take them with you over the term lifespan even if you change jobs or retire.
While employer-sponsored plans give some protection, they're often not enough.
When Should I Get Term Life Insurance?
If you have a family to protect and not a lot in savings, term life insurance can provide invaluable peace of mind. It's a low-cost option that's perfect for today's growing families.
Making the choice to purchase term life insurance can be scary. There's no doubt about that. But, doing so now could save your family and their future if the worst happened.
If you're ready to get term life insurance quotes, call us today. At Adroit Health Group, it's important to us that you fully understand all of your life insurance options. Our customer service team members are available to connect you with a licensed agent who can provide you with full plan information for your state of residence and life situation. During this process, your agent can help you explore product details and provide quotes for plans that would work best for you.