WHY TERM LIFE INSURANCE?TERM LIFE INSURANCE is a low-cost, affordable way to insure a financial exposure such as income loss due to death, mortgages, business loans and children's education for a specific time, generally 30 years or less.HOW SHOULD I DETERMINE WHAT TERM PERIOD IS BEST?Look at your specific exposure period. If you take out a 15 year or 30 year mortgage, then you may want to consider a 15 year or 30 year level term period. If your youngest child is 4 years old, you may want to consider a 20 year level to take you through the college years. A business loan may necessitate a 5 year or 10 year level period.HOW CAN I DETERMINE AN APPROPRIATE AMOUNT OF INSURANCE?Experience indicates that most people buy what they want rather than what they need, and they tend to deal in round numbers such as $100,000, $250,000, $500,000, and $1,000,000. Generally speaking, 7 to 10 times annual income is an often quoted "rule of thumb." |
