Individual Term Life Insurance
Individual term life insurance is the most pragmatic option for buying life insurance for the short term. You buy coverage for a fixed amount of time, usually 10, 15, 20 or 30 years, at a fixed premium. When the term is up, the policy is finished and you no longer have coverage. At this point, if you were to buy additional life insurance, it would be exponentially more expensive because you are now older.
It is cheaper to purchase than whole, universal or variable life insurance, primarily because it runs out. It is used to cover the main bread winner’s peak earnings range and potentially large outstanding exposures, like mortgage loans. You can buy amounts of coverage from $10,000 up to many millions and it can be a useful tool if used to “blend” more expensive whole life policies allowing flexibility and durability throughout one’s life.
Another useful feature of term life insurance is that it can be “converted” into a whole or universal type policy. JWA will access each client’s needs and advise as to the best structure going forward.