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Term life insurance offers a cost-effective way to continue taking care of your loved ones after you pass away. For many people, it’s a better option than spending the extra money on a whole life insurance policy. However, it’s important to make sure you’re not solely focused on price when determining what will best suit your needs. This is why it’s a good idea to sit down with your agent to gain greater clarity on what you can expect if you decide to buy term life insurance. Here are a few essential questions to ask during your meeting.

3 Term Life Insurance Questions to Have Answered Before Buying a Policy

1. How Many Years Should My Policy Cover? 

Unlike whole life policies, term life insurance is designed to last for only a specified period of time. Usually, you will have the choice of buying a policy to cover you for the next 10, 20, or 30 years. The length of term you should purchase will depend on why you’re buying it, for example, until you pay off a mortgage or your kids leave home. An agent can discuss your reasons with you and ensure you get the appropriate coverage. 

2. Are There Any Exclusions? 

term life insuranceSome term life insurance policies have exclusions, which prohibit beneficiaries from collecting death benefits on certain causes of death. These vary from one insurance company to the next, so it’s important to be clear on all the terms of a policy before you commit to buying. This is especially the case if you regularly participate in any particularly risky activities.  

3. Will My Policy Be Convertible?

People often purchase term life insurance in their younger years because it allows them to lock in a lower rate. While this is a wise decision, you may decide over time that a whole life policy would be better to have in the long run. Thus, you want to make sure you can convert your term policy later on should your needs change. Flexibility is key since life is unpredictable.  

 

Buying term life insurance can provide you with peace of mind about the future, but it’s vital to make sure the specifics of your policy fit your individual situation. If you need help exploring your options, contact David R Johnson Insurance. As a State Farm® agent, he can offer you quality coverage from one of the nation’s most reliable insurance companies. For nearly three decades, he has worked with the residents of Beech Grove, IN, to ensure they are adequately protected for whatever unexpected events may arise. Call (317) 782-8858 to schedule a time to go over all your questions and concerns, or visit him online to request an insurance quote. 

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