Term Insurance: Can You Afford Not to Have It? - PowerPoint PPT Presentation

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Term Insurance: Can You Afford Not to Have It?

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Term insurance plans protects your family and loved one’s against any threat under one life insurance term plan. For more details – PowerPoint PPT presentation

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Title: Term Insurance: Can You Afford Not to Have It?


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Term Insurance Can You Afford Not to Have It?
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  • Losing a family member can create both emotional
    and financial hardship on the entire family -
    whereas having a secure life insurance plan can
    help mitigate the costs involved. This is a
    benefit with both short and long-term plans. As
    you plan for your future, learning about the
    value and extensive benefits of your life
    insurance policies can help you maximize your
    investment.

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  • Term life insurance can help your family with
    any costs in the event that you pass away, and
    can help minimize the risks involved with
    financial hardship on loved ones. When a key
    family member passes, their employment benefits
    cease to exist. Although some employers extend
    special insurance coverage to the employee's
    immediate family, this may not be enough to cover
    long-term needs and expenses.
  • Term insurance is commonly known as a 'pure' form
    of life insurance because it only covers the
    insured for a specific period of time. The
    insurance policies will expire after a certain
    date, making sure that the policy holder's family
    and immediate beneficiaries are covered
    completely. It can help to protect a family's
    financial standing, or make money immediately
    available for children's college education or
    living expenses.

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  • Determining Term Insurance Coverage
  • If you invest in a term insurance plan, you'll
    need to consider the length and type of the
    policy you want to invest in. The insurance
    policy is a legal document, and each type of
    insurance will vary by state or country. Term
    insurance is an affordable way to cover any
    potential risks in your future years if you have
    numerous dependents, you really cannot afford not
    to have it. The best coverage for your family
    will depend on how many assets you own if these
    are not valuable enough to provide cash after a
    sale, your family can be at a severe financial
    risk. Another factor to consider is whether you
    require a death benefit for a business. Any
    outlying businesses will require some form of
    coverage in the event that you are no longer the
    owner. Ultimately, term insurance is designed for
    complete financial protection in the event that
    you pass away.

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  • Annual Renewable and Level Term Insurance
  • The beneficiaries of your insurance proceeds will
    receive the funds free of federal and state
    income taxes. The money can be used for any
    expenses, costs, and even pay off some debts such
    as a mortgage or outstanding revolving accounts.
    Term insurance can be renewed each year, while
    other premium policies can be extended for a
    specific period of time. Annual renewable term
    policies are ideal for short-term needs and the
    premiums will fluctuate each year upon renewal.
    However, this may become unaffordable if it is
    started too early. A level premium term life
    insurance plan may be a better option, since this
    will cover the insured for a set of years 10,
    15, or 20 years at a time will be covered at a
    set rate so there will not be any fluctuations in
    payments. Renewals may require an evidence of
    insurability, but you will have a chance to take
    advantage of more favorable rates.
  • Key Benefits of Term Insurance
  • A number of benefits exist for term insurance
    policies, and finding an affordable plan can help
    minimize the costs involved with alternative
    options such as permanent life insurance. Key
    benefits of term insurance include
  • o Beneficiaries are paid the face value of the
    policy when the insured dies during the term
  • o Term insurance generally costs less than
    permanent life insurance plans and policies,
    making it more affordable in the long-term
  • o Some policies are renewable and may even be
    converted to a permanent insurance status
  • o A level term life insurance policy can last up
    to 30 years
  • o A higher cash value after proceeds are
    distributed to beneficiaries

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  • Death benefits are not paid at the end of the
    term, so establishing the right amount of the
    policy is important during the selection process.
    Term insurance is the simplest and easiest type
    of insurance available. Most have a renewable
    feature that will allow you to increase the
    premium if any health concerns or life changes
    occur, and locking in secure rates becomes much
    easier. Qualifying for various policies can be
    challenging, but once the medical evaluation is
    completed, the physical examination will easily
    approve a certificate of insurability.
  • What Term Insurance Proceeds May Be Used For
  • Once the insured has passed away and the
    beneficiaries receive the proceeds, term
    insurance can be used for a variety of purposes
    that can maintain your family's financial health
    and protect them from hardship. Common uses for
    proceeds may include
  • o Paying off a mortgage
  • o Setting up a retirement fund for a spouse
  • o Covering children's school and college expenses
  • o Paying off debts such as credit cards or auto
    loans
  • o Purchasing stocks for long-term investments
  • o Covering business expenses
  • o Cover health costs of immediate family members
  • o Pay for personal expenses

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