Fixed Term Life Insurnace

Fixed term life insurance refers to a type of life insurance policy which covers you for a specified period of time. If you should die within that time, the people you designate will receive money as stated in the insurance contract. But why is fixed term insurance a good idea and who is it for? There are many reasons that people buy term life insurance policies, but the main one is for peace of mind.

Why You Might Need Protection

Suppose you have a new house and you're paying off the mortgage. What would happen if you were to die, leaving your family unable to make the house payments? Would they have to move to a smaller house or an apartment? Is it possible that they could be left homeless? You need to protect your loved ones against the possibility that you might not be around to make your mortgage payments, and that's where a fixed term life insurance policy can help out. You can get a policy which covers you for the term of your mortgage payments and then expires. That way, if you die, your family will receive enough money to pay off the mortgage and own the house outright.

There are many other scenarios that fit in to this same mold. For example, if you have car payments or some other debt, you might want to be sure they're paid off. Some people want to cover the possibility of the loss of income so that their family can continue to live they same lifestyle they're used to. Still other families want to make sure that their children are able to attend college. With tuition so high these days, it's no wonder that many parents are hedging against the cost of paying for college.

Details Of A Fixed Term Policy

A term life insurance policy is a contract through which the insurance company agrees to pay money, called the death benefit, to your beneficiaries. Usually this is your spouse, children, or other family. The policy lasts for a fixed amount of time, called the term. Common terms are 10, 15, 20, or 30 years. In return for this coverage, you pay the insurance company a monthly fee called a premium.

A term life policy carries no cash value, which means that if the term expires the insurance company keeps all your money. That's okay, since term life insurance is quite a bit cheaper than other types of insurance such as whole life or universal life. That's because of the fixed term and the lack of cash value of the policy. Often a health adult can get a term life policy for just a few tens of dollars a month. In fact, financial advisers tell people to avoid those whole life policies except in very unusual circumstances. You're better off buying a term life policy and investing the difference in premiums.

Want To Know More?

If you're considering getting fixed term life insurance, enter your zip code in the box to get quotes from companies offering life insurance to people in your area. It's free, and there's no obligation. Protect your loved ones today!

Tags: life insurance, term life insurance, fixed term life insurance