Term Life Insurance – How Much Do You Need?
Is term life insurance the right product for you? How much do you need? How do you calculate the proper amount of term life insurance? The PivotCare Assess Needs calculator can help!
The Assess Needs calculator can help you determine how much term life insurance you require in a variety of ways. One method uses a replacement of your current salary for a number of years and an alternative to salary replacement considers your monthly expenses such as: utilities, school, taxes, auto, etc. for a specific period of time. You may want to have adequate term life insurance to pay off debts such as; mortgage balance, credit card balances, student loans, personal loans or any other debts.
The PivotCare Assess Needs calculator allows you to combine the above items to determine a total amount of term life insurance you would like to have for your family’s financial security or you may select an individual need you would like to cover. Term life insurance policies are designed to provide protection for a specified period of time such as 10 years but up to as long as 30 years. The amount of term life insurance needed and the period of time the coverage is needed may best be solved by more than a single policy.
For example, you may want to have adequate term life insurance while dependent children remain at home until the youngest child reaches the age of 22 and you may also want term life insurance to cover a mortgage in the event of your passing. There may be a need for a term life policy for the child dependency period, which may be for a shorter time frame than the length of the mortgage, which may be longer. Whereas, term life premiums are less expensive for shorter periods than longer periods, a review of the options can be discussed with a PivotCare specialist. Proper planning is required when selecting the term period because it cannot be changed once the policy has become active.
Term life insurance policies may be eligible for conversion to permanent life insurance products such as whole life or universal life in the event your life insurance needs change and you require permanent life insurance. The contractual right to convert term life insurance to permanent life insurance without medical approval is called a conversion option. Not all term life insurance policies contain conversion options.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.