Life insurance isn’t a topic that people typically like to think about, but it’s an important part of your financial planning. In fact, many people gain peace of mind in knowing that their loved ones are protected. But with so much information and so many options, which policy is right for you?
Many young adults choose term life insurance, which offers coverage for a predetermined term of 10, 20 or 30 years. For a low monthly premium—often cheaper than your internet bill—you can financially protect your family in the event that you pass away during the term of your policy. Because of this, term life insurance is often considered the most cost-effective type of life insurance.
What’s more, it’s the perfect solution for young families because premium rates are locked in for the duration of your term. People are typically healthier in their 20s and 30s than they are in their 60s and 70s. This means that if you purchase a long term policy earlier in life, you can pay a significantly lower rate than if you purchase life insurance later on when you may have health issues that would otherwise increase your premium.
At the end of your term, you may or may not qualify for a renewal, depending on the status of your health. If you do qualify, it’s likely that you’ll have to pay a higher premium, particularly if your health has deteriorated.
Term life insurance can also be purchased to supplement a permanent life insurance policy during times of need, such as if your family is growing or if your children are in college. Talk to your independent insurance agent to determine how much coverage is right for your family’s needs.
We’ll help protect your family. Call us at 925-244-1330 for more information on San Francisco life insurance.