Term Life Insurance – A Simple Explanation
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Life insurance can be confusing. Have you heard people asking questions like these?
- What is life insurance?
- Why do I need life insurance?
- What do I get with life insurance?
- How much do I have to pay for life insurance?
- How can I trust a life insurance agent?
September is Life Insurance Awareness Month. We are writing simple posts to explain life insurance. Also, you can ask questions about your situation.
Term Life Insurance
- What is it?
- Term means a period of time.
- This could be 5, 10, 20, or 30 years.
- Why do people buy it?
- To replace their income if they die
- Less expensive than other insurance policies
- How do I decide how much I need?
- Try one of these calculators
- Dave Ramsey says, A rule of thumb is 8 10 times your income
- Multiply your yearly salary by 8 and by 10
- Suze Orman says, $120,000 in insurance for every $500 of monthly income
- Divide your monthly income by $500
- Multiply that number by 120,000
- How much does it cost?
- It depends on things like
- Age
- Health History
- Tobacco Use
- Amount you want
- Term (or Time) of Policy
- It depends on things like
- How can I get a quick estimate?
- Heres a quick term insurance estimate
- 6 Steps
- Takes about 60 seconds
- Easy to understand
- Dont have to talk to an insurance agent
Related Resources
- 7 Killer Insurance Mistakes Youre Probably Making [From US News and World Reports]
- 7 Life Insurance Mistakes to Avoid [From MSN]
- The Details of Term Life Insurance [Allstate]
- Life Insurance Some Reasons to Consider It [Good Hands Community]
- Investing in Life Insurance [Good Hands Community]
Demystify life insurance by checking out our Tools and Resources page on Allstate.com!
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