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Term life insurance offers an individual a death benefit paid to his beneficiaries if she dies within the time period the policy is in effect. The primary purpose of term life insurance is to protect the beneficiaries from the loss of income of the policy holder. According to the American Council of Life Insurers, a person should buy enough term life insurance to replace lost income. If an individual dies owing debts, such as a mortgage or car payments, these must be paid by his estate. Also, according to the Oklahoma Department of Insurance, future education costs, including providing for a child's college tuition, are also factors to be considered when buying term life insurance. Although replacing lost income is the primary purpose of term life insurance, other factors also come into play, making it difficult to decide on the exact amount of coverage to purchase. Because of this, many experts suggest seeking the advice of a financial planner before buying term life insurance. American Council of Life Insurers: What You Should Know About Insurance Oklahoma Department of Insurance: Choosing Your Life Insurance Policy Kiplinger.com: How Much Do You NeedOn One Hand: Only Replace Lost Income
On the Other: Also pay Debts, Education Costs
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What percentage of term life insurance pays out?
by Answerbag Staff on July 12th, 2010
| 1 person likes this
Can you deduct your term life insurance payments from your federal taxes?
by Answerbag Staff on July 10th, 2010
| 1 person likes this
I purchased a term life ins. policy when I was in my 30s. It will have to be converted when I am my 60s. Was this the wisest decision or should I purchase a whole life policy instead?
by Anonymous on October 10th, 2008
| 1 person likes this
What percentage of term life insurance is actually paid out to beneficiaries?
by Answerbag Staff on June 3rd, 2010
| 1 person likes this
what is term life insurance? which is best for me?
by gorgepollard on April 5th, 2010
| 1 person likes this
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