What is term insurance?

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September 2016
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Think of Term Insurance and Life Insurance that covers for you for a specific amount of time. For example you have a large 30 year mortgage, you may want to get life insurance to make sure your significant other and kids are ok if something were to happen to you. You would get life insurance to cover the “term” of the mortgage.

There is a myth that term life insurance is cheaper than other options. While true “term” may cost less in the short term, it will cost more in the long term (assuming you don’t die right away), and actually very few term policies ever pay out. The insurance companies can make them so cheap in the short term because they expect that very few people will pass away before they abandon coverage.

Think of it as cost versus value- you pay less, but if all goes well you will be alive, but get nothing back from your premiums paid in over the years.

For more life insurance tips visit: Life Insurance 

All the best,

By David Rae, Certified Financial Planner™, Accredited Investment Fiduciary™


Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA, SIPC, a Registered Investment Advisor. Trilogy Capital Trilogy Financial and NPC are separate and unrelated entities.  The opinions voiced in this article are for general information only and do not constitute an endorsement by NPC.

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