A Guide to Term Life Insurance

A Guide to Term Life InsuranceThere are many different kinds of Connecticut life insurance policies with different attributes associated with them. Universal, whole life, cash value…you’re going to hear these terms often when searching for life insurance, and you may be overwhelmed and unsure of what they mean. Earlier this week, we went over the details of whole life insurance and the kind of person who would benefit from it, and now we’d like to take a look at term life insurance.

A term life insurance policy is one that covers a specific number of years. Once the agreement is signed, you pay the premium on a regular basis to guarantee a death benefit if you pass within the set term.

Peace of Mind

If you were to die before the end of that term and your premiums are paid up, the beneficiary of your policy receives the value of your policy. If the term ends and you’re still alive, both you and the company walk away.

In general, a term policy is less expensive for the amount of insurance you get as compared to other policies.

If you’re purchasing the policy for peace of mind, it should completely cover the things that you’re worried about. That’s an important factor to keep in mind when you’re determining the specifics of the policy you need. If you reach the end of the policy but you’ve been saving, you shouldn’t need a big insurance policy at that point.

How Long Should My Term Be?

You will have options of how many years you want your policy to be, and it is not always easy to decide. Generally, the longer the term of the policy, the higher the premiums are going to be.

Ask yourself what situations a Connecticut life insurance policy can protect you against. Many people purchase term life insurance policies so their children are financially protected throughout their childhood. Others get the policy simply protect their spouse until retirement. Pondering upon those types of components should point you to the right policy term for you.

Speak to a Connecticut life insurance agent about which reasons are relevant and what ones aren’t.

How Much Insurance Should you get?

You should have enough insurance to replace your income for that entire period. If you have a baby and want to make sure they’re set through high school, calculate how much your income would be through that whole period. Take into account your full financial situation before going all in, because a family high in debt requires more insurance than a family in a strong financial position.

The younger you are, the cheaper your premiums will be. If you’re a young parent purchasing insurance to protect your child, rates are pretty low, because your risk of dying before 50 is quite low.

The Path Forward

A life insurance bill may become one of your most important bills. If you don’t pay it, then you’re no longer insured and, getting a new policy would be substantially more expensive.

If a change in your situation impacts the amount of insurance you think you’ll need, you can easily end the old one by contacting your Connecticut life insurance agent. A life change happening to you personally may end up saving you a significant amount of money.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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Norwich Office

Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

 

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