Insurance Center

Term life insurance provides life insurance coverage of a specified amount during a pre-set period of time.

Often a good choice, term life insurance is designed to provide a specific pay-out to the beneficiary upon the death of the insured, allowing a person to ensure that their family's financial needs are taken care of in the event of their death. A term life insurance policy is usually relatively inexpensive and can be purchased for whatever level of coverage or term is desired.

Before choosing a term life insurance policy, determine the appropriate level of coverage needed. A common way to do this is to calculate current annual expenses and multiply by the estimated number of years for which this amount would be required. Add to that any additional anticipated expenses, such as college tuition for dependant children. If desired, factor in an additional amount for the payoff of current debts, inflation or unforeseen expenses.

Here’s an example, let's say you're the sole support of your young family. Your current annual expenses are $25,000 and your only child is 5 years of age. You desire that, in the event of your death, your spouse will be able to continue to stay at home and care for your child through high school. You'd also like your child to attend a state college. With these facts in mind, a term life insurance policy of $400,000 is probably the minimum coverage that should be considered.