Term life insurance is designed to be simple. It has a clear and transparent value proposition – you pay to obtain coverage that can support your family, should you pass away during the term of your policy, and that is it. Terms can be 10, 15, 20, 25 or 30 years. The beauty of term life insurance is that it gives you one product that does one thing really well. It also provides invaluable peace of mind during the years when you most need to protect your people.
The cost of term life insurance can be 3-10x cheaper than other types of life insurance, such as whole life. That’s because you're only paying for the years that you need it. The monthly premiums are fixed so you don't have to worry about price increases either.
Your beneficiaries will only receive the payout if you pass away within the term. If you pass away after the term has ended, your beneficiaries will not receive a payout. Check out our article on term life insurance payouts if you'd like to learn more!
Many people may need less life insurance over time because their children will become financially independent, mortgages will get paid off, and they will retire on their savings, etc. So if someone wants coverage only for a specified period of time, term life may make more financial sense. With a term policy through Ladder, you don’t have to pay for more coverage than you need.
You are able to renew policies for a certain period of time after the original term has ended. The benefit of renewing the term is that your insurability is guaranteed but it usually comes with a higher monthly price.
If you’re still curious, here’s a blog post about Term Life Insurance.