What Is Term Life Insurance? 

Term life insurance may provide coverage for a specific number of years. If the insured person passes away during the policy term, the policy may pay a death benefit to the chosen beneficiaries. This payout can be used for various purposes, including mortgage payments, education costs or daily living needs.

Advantages of Term Life Insurance

Here are some benefits of term life insurance:

• Affordable costs—Term life insurance generally has lower premiums compared to permanent life insurance, making it a practical option for many California families.
• Straightforward coverage—These policies are simple, with no investment components or cash value accumulation.
• Flexible terms—You can select a coverage period that aligns with your needs, such as until your children are grown or your mortgage is paid off.
• Higher coverage amounts—Term policies often allow for substantial coverage at a lower cost, helping you provide strong financial security for your loved ones.

Term Life Insurance vs. Other Options

Unlike whole or universal life insurance, term life insurance does not build cash value and only lasts for the chosen term. Permanent life insurance options, while offering lifelong coverage and potential cash value, usually involve higher premiums. Term life insurance is ideal for those seeking affordable coverage for a specific timeframe, especially when financial responsibilities are at their highest.

Learn More

If you’re a California resident, our team at De Anda Insurance can guide you through comparing life insurance options and help you select a suitable policy. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.