Income Replacement
Consider how many years you are going to keep working and how much income would be lost if you passed today. Don’t forget to factor in the cost of inflation as well.
Types of Term Life Insurance
At Ansay & Associates, our team of experts get asked all the time, “What is term life insurance?” Like other life insurance products, term life insurance leverages your premium payments into a death benefit that pays out to your heirs tax free and without passing through probate. One of the big features of term life insurance is that it is less expensive than other life insurance policies because the coverage is set for a temporary amount of time, usually for a period of 10 – 30 years. The lower premium cost allows you to put your income towards building other, long-term assets, while ensuring your family is protected if you were to die in your prime income earning years. Term insurance rates are largely determined by the age bracket you fall in, and the premium increases as you grow older. This is why term life insurance is ideal for people in their prime.
Some helpful things to consider when deciding the right amount of death benefit include:
