On average, life insurance rates are more affordable for term than whole life insurance because term policies offer coverage for a predetermined time. If you outlive the term and the policy expires, your beneficiaries don’t receive the death benefit, so it’s less of a risk to the insurer.
You have many options when choosing how long your term life insurance should last? Typically, you can buy coverage for one, five, 10, 15, 20, 25, 30 or 40 years
For many people, term life insurance is a simple, affordable way to safeguard the financial health of loved ones if something happens to them. Plus, it’s easy to understand, which makes it simple to shop for. As long as you pay the premium, you’re covered for the duration of the policy.
The Bottom Line
Life insurance isn’t just for the wealthy. No matter your income level, life insurance can ensure that your loved ones could make ends meet if you were to pass away. And, life insurance might be more affordable than you think.
Life Insurance Payouts Are Tax-Free
Life insurance payouts aren’t considered income for tax purposes, and your beneficiaries don’t have to report the money when they file their tax returns.
Your Dependents Won’t Have to Worry About Living Expenses
If you have a policy (or policies) of that size, the people who depend on your income shouldn't have to worry about their living expenses or other major costs. For example, your insurance policy could cover the cost of your children's college education, and they won’t need to take out student loans.