Term life insurance provides coverage for a certain amount of time, typically between 5 and 30 years. If you die within the term, the life insurance will pay out the death benefit.
Why It's Important
I love term life insurance because it is generally cheaper than whole life insurance and covers me for a significant period of time. Life insurance, in general, is important and should be part of most people's financial wellness plan. Life insurance is specifically important when you have a family and/or kids that depend on your income.
As a single mom, I have two term life insurance policies. One is a 25-year term and one is a 30-year term. I prefer term life insurance because the premiums are cheaper than whole life and I figure by the time I am in my 50s, no one will be depending on my money. My kids will be grown and out the house, I will be debt free, and all I would have to cover are my burial costs which average about $10,000 on the high end so term life fits my financial plan.
Do you have life insurance? I highly recommend purchasing some to be sure your loved ones are taken care of when you are gone.