LIFE INSURANCE

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•  In 2022, 106 million American adults were without life insurance or underinsured
•  All income levels are now less likely to say they have life insurance coverage 
•  More than 50% of Americans overestimate the cost of life insurance by 300% 
• 30% of Americans believe life insurance is only for end of life expenses, leading them to not purchase enough to provide income replacement or allow wealth transfer.
• Life insurance premiums increased by 21% in the second quarter of 2021, the largest year-over-year increase since third quarter 1987.

 Term life insurance is a type of life insurance policy that provides coverage for a specified period of time, typically ranging from 1 to 30 years. If the insured person dies during the term of the policy, the policy pays a death benefit to the beneficiary designated by the insured person. The death benefit is typically a lump sum payment and is designed to provide financial protection to the insured person's family or dependents.

Term life insurance policies do not accumulate cash value and generally have lower premiums compared to permanent life insurance policies, such as whole life or universal life insurance. This makes term life insurance an affordable option for individuals who need life insurance coverage for a specific period of time, such as when they have young children or a mortgage to pay off. Once the term of the policy ends, the insured person may have the option to renew the policy or convert it to a permanent life insurance policy, depending on the terms of the policy.

Term life insurance offers several benefits, including:

1. Affordable premiums: Term life insurance is typically more affordable than permanent life insurance, making it a more accessible option for many people.
2. Flexibility: Term life insurance policies can be customized to meet the specific needs of the policyholder, including the coverage amount and length of the policy.
3. Protection for a specific period of time: Term life insurance provides coverage for a specific period of time, which is often the period of time when the policyholder's dependents are most financially vulnerable.
4. Ease of understanding: Term life insurance policies are straightforward and easy to understand, making it simple to compare different policies and make an informed decision.
5. Convertibility: Many term life insurance policies offer the option to convert to a permanent policy, providing the policyholder with more long-term coverage and potential cash value accumulation.
6. Tax benefits: The death benefit paid out to beneficiaries is usually tax-free, providing additional financial protection to loved ones.