Life insurance provides a financial security blanket. When you’re looking for this sort of financial protection, your best bet might be term life insurance.
As its name suggests, term life insurance covers a certain term — like 6 months, a year, or longer. Once the term ends, your coverage does, too. Typically, term life coverage is available for 10-, 20- or 30-year periods; however, Direct Auto Insurance offers convenient policies covering 6- and 12-month terms that is guaranteed renewable for a period totaling 2 additional years.
Why should you consider term life insurance? Here are five reasons.
1. It is cheaper than whole life insurance.
While typical term life insurance covers a set number of years, whole life insurance covers your entire life. As a result, the cost of term life insurance is typically lower than the cost of whole life insurance.
Also, basic term life insurance is cheaper because it doesn’t accumulate value. On the other hand, whole life insurance builds value as an investment product.
Among the factors that could affect the cost of term life insurance are:
- Your age.
- Your health.
- Your gender.
- Your job.
For instance, at Direct Auto & Life, a healthy 35-year-old man or woman would pay about $22 a month for $25,000 worth of life insurance over a 12-month term.*
For comparison, a healthy 60-year-old man or woman would pay about $57 a month for the same $25,000 life insurance policy.**
2. It provides a financial cushion.
Term life insurance is especially valuable if you’re raising a family and you’re on a tight budget. That’s because the death benefits paid out under a term life insurance policy could prove better and more affordable than the death benefits (the amount of money the life insurance company will pay to a beneficiary or to beneficiaries in the event of the insured's death) paid out under a whole life insurance policy.
If the policyholder dies before the term ends, a term life insurance policy will pay benefits that can cover funeral costs, make up for lost income, cover everyday expenses, and help finance your children’s college education.
“Term insurance typically provides for the largest immediate death benefit amount for each premium dollar,” according to the New York State Department of Financial Services.
3. It is great for young families.
The Texas Department of Insurance says term life insurance can be a good option for young families who have children, since you might need coverage only until your kids are grown up and are holding down full-time jobs. Term life insurance could be a relatively low-cost way to find peace of mind, without busting your budget.
4. It’s easy to get, easy to understand.
You can go from getting a quote to getting covered in less than five minutes, at least through Direct Auto Insurance. Since our affordable term life insurance policies don’t require a medical examination (just answer a few simple health questions), the whole process doesn’t take long at all!
5. It offers a variety of payment options.
Unlike credit card bills, which must be paid each month, the premiums for a term life insurance policy often can be paid monthly, quarterly, semi-annually or annually.
Is life insurance worth it? You bet. Is life insurance affordable. Sure is. Term life insurance is extremely affordable. For less than a dollar a day, you could be securing a better financial future for your family with a term life insurance policy. Get a term life quote online, call 1-877-GO-DIRECT (1-877-463-4732), or visit a Direct Auto Insurance location near you.
*Based on a term life insurance quote conducted on DirectGeneral.com in ZIP code 37209 with a policy effective date of 07/31/2018 and insured date of birth of 01/01/1983.
**Based on a term life insurance quote conducted on DirectGeneral.com in ZIP code 37209 with a policy effective date of 07/31/2018 and insured date of birth of 01/01/1958.
Policy terms and conditions apply. Individual term life insurance by Direct General Life Insurance Company, Nashville, TN. Policy 58TL02010713. Premium and other terms will vary by state, the insured's age, and the selected coverage.