Adulting 101: Term Life Insurance

Wondering how to “adult” in the real world when it comes to financial matters? Most people realize that having things like a family budget and setting financial goals for the future are important, but life insurance is an item that may be overlooked or not understood. Term life insurance can be a key part of your long-term financial plan, yet many younger adults don’t know where to start.

What is Term Life Insurance?

It’s not something you want to think about, but as an adult you need to think about: what would happen to your loved ones if you passed away? A life insurance policy – such as term life – would provide a monetary payout to your beneficiaries so at least they would have financial help. A term life policy provides protection for a specific length of time (the “term”), providing protection at a lower cost than other types of insurance. With a Gerber Life Family Plan Term Life, you could choose coverage for 10, 20 or 30 years with coverage available from $100,000 to $2,000,000*

Why Do I Need Term Life Insurance?

When it’s time to “adult,” it’s important to think about what kinds of expenses your family will have to cover if you’re not there to help them anymore. Depending on your situation, that could mean having to replace your income, covering the mortgage, making car payments, paying for daycare, buying groceries and more.

How Long Do I Need Coverage?

This is a very personal decision and can depend on why you’re buying it. For example, if your motivation is to help make sure your kids will be properly cared for while they’re still living at home, and are buying a policy when they’re very young, a 20-year term would make a lot of sense. Have a 30-year mortgage? Then consider a 30-year term.

Is Term Life Insurance Affordable?

This type of coverage can be a great option for someone who isn’t financially ready to have Whole Life insurance coverage but wants to safeguard their family from financial hardship. (Whole life insurance, as the name implies, provides coverage for your entire life — but at a higher cost. Term Life coverage is for a specific length of time, so is less expensive.) Example: A $250,000 Gerber Life Family Plan 20 year term policy costs as little as $15 a month for a healthy 30 year old female.**

Is There a Medical Exam?

In many cases a medical exam is not required.* Coverage is dependent on answers to health questions. By buying coverage while you’re young and healthy, you’ll lock in a premium rate for the duration of your policy, since premium rates are based on age.

What if I Want Coverage for My Spouse or Kids?

Check out our Family Plan. You can get Term life coverage for yourself with the option to add coverage for your spouse and/or children all on one policy. Or your spouse can apply for their own policy!

We’re here to help.

Gerber Life is here to help you navigate the waters of “adulting” and wants to make it easier for you to understand your life insurance options. Learn more about Term Life insurance by calling us today or applying online.

* For those choosing higher coverage amounts ($1,000,000+) or if over age 55 and applying for more than $500,000 in coverage, a medical exam would be needed.

** Preferred premium rate with automatic monthly deduction from a bank checking or savings account.