What is "term life insurance"?
Term life Insurance is a pure death benefit. It has no cash values. It is just a pure death benefit. And the premiums today are usually locked in for ten, fifteen, twenty, or thirty years. As an example, a healthy thirty year old male who is perfectly healthy, might be able to buy a million dollar term life insurance policy with premiums guaranteed to be level for twenty years at three hundred dollars. Now after twenty years the premiums go through the roof. So as an example, it might be three hundred dollars for twenty years, but in the twenty first year the premium might be three thousand or five thousand dollars per year. And it goes up every year thereafter because as you get older, the mortality tables tell you that you are likelier to die than when you are twenty years of age or thirty years of age. That is when the premiums go through the roof. But some people have an opinion that they will only need a life insurance policy for a ten or fifteen or twenty year period. I talk to people all the time who say in twenty or thirty years I will have enough money in my bank account, my retirement account, I will inherit tons of money. And they say I will not need life insurance after that period of time. And I can point out that that usually is not the case. But ultimately you have to make that decision because as a good insurance broker, it is your agenda not my agenda. I can guide you and tell you, "here are things people can do." It is your decision what you want to do.
