With inflation and fears of a recession, you may be looking to add more financial security to your financial plan and be thinking about buying life insurance. Term life insurance is a good choice for people who want the most affordable life insurance that covers your working years or the length of a mortgage.

Term life insurance, also known as pure life insurance, guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate. When you buy a term life insurance policy, the insurance company determines the premiums based on the policy's value (the payout amount) and your age, gender, and health. In some cases, a medical exam may be required. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history.

Term life insurance is typically available for 5, 10, 15, 20, 25, and 30 years. Some policies also last for longer terms of 35 and 40 years. The most common length for term life purchased is usually 20 years.

You may be wondering what length of term life insurance is the best. It depends on your situation and financial needs, but there are some guidelines you can follow to get started: For example, if you're buying term life to cover your children's college tuition, and if it's in nine years, you might pick a 10-year term life insurance. On the other hand, if you just bought a house and took on a 30-year mortgage, you're likely looking at 30-year term life insurance.

Term life insurance covers you for the term of the policy. While younger is generally better, when that term should start may also be based on when you anticipate other people depending on your income. You'll want the policy term to last as long as your dependents need your income. For parents, this is often until their children are grown.

People in couples who own property together may want to be covered until their mortgage is paid off. If both people in a couple earn income crucial to the family, then each should have their own coverage. Parents who don't earn income may also want to consider coverage, as their unpaid labor (childcare, etc.) might need to be replaced by paid services (like daycare) in the event of their death.

Life insurance may be prudent even before you have dependents if you have unsecured debt, such as credit card debt or some private student loans. For instance, credit card companies require the payment of all outstanding balances upon the holder's death.

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.