Think of term life insurance like a subscription. You buy a certain amount of coverage for a set period of time (your “term”) and pay an insurance company a flat-rate premium every month. This guarantees that your beneficiaries would receive a lump-sum payout (known as the “death benefit”) if you passed away during your term.
It’s ultimately up to your beneficiaries to decide how to use the payout. People often use it to help cover things like:
It’s different for everyone and varies based on your unique situation. The biggest factors that can affect your premium include: