Life insurance is a necessary yet sometimes confusing option for buyers. The average consumer knows the importance of obtaining a good indemnity plan in Catonsville, MD. Not as many, however, completely understand what life insurance covers and whether or not term insurance is right for them. The agents at HBW Insurance Group can help you fully comprehend the type of life insurance you are buying before you sign in agreement to the terms. 

What is term life insurance?

Term life insurance is indemnity coverage that pays for your final expenses in the event that you die within a set time limit. Options for this type of coverage typically come with expiration dates that sometimes cause your monthly premium payments to either increase or decrease. 

It is important to note that term life insurance does not have any cash value. There is no equity that you can borrow against while you are living. 

How does term life insurance work?

Term life insurance begins with the company calculating monthly payments for potential policyholders. The amount you pay largely depends on your age, health, and overall life expectancy. Some policyholders pay more for term life insurance because of family medical history that points to chronic diseases such as diabetes and kidney disease. Still, term life insurance is significantly cheaper than whole and universal life insurance plans. 

Your loved ones will receive payment for your final expenses if you pass away within the specified term limit of coverage. Indemnity companies do not pay for final expenses if the individual passes away after the policy expires. 

Determining if term life insurance is right for your family should involve a discussion with an agent. Call HBW Insurance Group today to speak with an expert about coverage.