Life changes such as buying a home, having a child, or switching jobs can lead you to reassess your financial priorities. Understanding term life insurance can help you protect your loved ones financially in a straightforward and affordable way. Whether you're exploring coverage for the first time or considering adding to an existing policy, this guide is here to help.

What is Term Life Insurance?

Term life insurance is one of the simplest and most affordable forms of life insurance. You choose a term length—10, 20, or 30 years—and a coverage amount. If you pass away during this term, your beneficiaries receive a tax-free payout to help with expenses like mortgage payments, funeral costs, and living expenses.

Options for Term Policies

There are several types of term life policies:

• Level Term: Premiums and the death benefit remain constant.
• Yearly Renewable Term: Premiums increase as you age, but coverage renews annually.
• Decreasing Term: Often paired with mortgages; the death benefit decreases over time, but premiums stay the same.

Additional Features to Consider

Some term policies come with added options:

• Return-of-Premium Rider: Allows you to recover premiums when the term ends, though it may cost more.
• Convertible Term: Lets you switch to permanent coverage later without a medical exam.

Reasons to Act Now

With 102 million U.S. adults having no or insufficient life insurance, now is a good time to act. Rates are rising, particularly for older buyers, and 72% of Americans overestimate term life costs. Don’t cancel current policies; instead, consider layering coverage if you've taken on new debt, had children, lost employer coverage, or simply want to lock in lower premiums while younger.

Reassessing Your Coverage

As life doesn't stay static, neither should your insurance coverage. By understanding term life insurance, you can affordably protect your loved ones and bring peace of mind. Assess your situation and consider speaking with a licensed insurance advisor to explore personalized options.