When you're shopping for life insurance that’ll provide for your family, you have two primary options: whole life insurance and term life insurance. Whole life insurance includes an investment arm and often includes other types of coverage as well, such as disability insurance. On the other hand, term life insurance is more straightforward and generally less expensive. Learn more about the benefits of term life insurance to determine if it’s the right fit for you and your family.

How Does Term Life Insurance Work?

When you buy term life insurance, it covers you for a pre-arranged number of years—typically 5, 10, 20, or 30. During that period, your rates never increase, and you remain covered as long as you continue to make timely payments.

If you pass away while the policy is in effect, your beneficiaries will collect the death benefit. Depending on your plan, this will usually range from $25,000 to $2,000,000. If your coverage expires, you can renew the policy, though you will be paying a new rate that is usually higher than your previous one. After all, you will be several years older now than you were when you created the first coverage plan.

With term life insurance, you can’t adjust the policy amount once your coverage begins, but you can purchase an additional, supplemental policy if you’d like.

What Are the Benefits of Term Life Insurance?

As mentioned, term life insurance is cheaper than whole life insurance. Monthly rates are generally very affordable, and you can often find policies that don’t require a medical exam. The death benefit for term life insurance can also be used for nearly any purpose. For example, it can provide for your family's living expenses, put your kids through college, pay for your final expenses, and more. Additionally, this type of policy is very flexible. For instance, if you only need coverage until your children are older, you can select a shorter term.

For indispensable advice creating a term life insurance policy, contact Daniel Oliver Insurance Agency in Edina, MN. They've been serving clients in Hennepin County and Greater Minneapolis for over 30 years and are happy to share their expertise. They also specialize in auto, business, and homeowners insurance, so be sure to ask about bundle discounts. Visit their website or call (952) 925-4454 to request a quote.