Explain Term Life Insurance
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If you’ve been thinking about buying life insurance, term life could be the right choice for you. That’s because it’s not only flexible, but it’s also one of the most cost-effective options out there. Here’s a quick overview of what to think about before choosing a policy.
What is term life?
Term life insurance provides coverage for only a set period of time, typically ranging from 10, 15, 20, or even 30 years.
How does it work?
Once you choose the length of coverage that’s right for you and get approved for a policy, you’ll begin making payments every month until that coverage ends. For example, if you buy a twenty-year policy and pass away ten years later, as long as you’ve made your payments, your family will receive a lump sum of money and be protected from financial hardship.
How does the length of coverage impact the cost?
The longer the term length, the higher the monthly payment. So if you’re on a budget, a shorter term might be something to consider. Although, with a longer-term, you do have the ability to lock in your rate. That means if you suddenly become sick, your rate won’t increase. And if you decide to choose a shorter-term policy and eventually need to reapply, an illness could mean that your rate will increase significantly.
How much coverage do I really need?
The go-to rule is to get at least 10x your salary, but everyone’s situation is different. For a more in-depth look at how much you and your family may need, you can calculate it here.
How do I get started?
John Hancock has been helping families get the life insurance coverage they need for over 160 years. Their life insurance policies also include a program called Vitality that rewards you for things like eating well, exercising and reducing your stress. Ready to get started?
Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595
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