One of the decisions you’ll have to make when shopping for life insurance is choosing between term life insurance and permanent life insurance. To make an informed decision, it’s important to understand both insurance types. This blog focuses on term life insurance with insights from the experts at Senn Insurance Agency serving O’Fallon, MO.

What Is Term Life Insurance?

Term life insurance provides coverage for a specific term or period. Young individuals often prefer term life insurance to ensure that their loved ones are protected financially if they were to pass away. It can help cover mortgage payments or other day-to-day expenses incurred after the insured’s death.

How Does Term Life Insurance Work?

A typical term life insurance policy mandates a medical exam before activation. The policy pays out a set amount if the insured dies during the term. Some policies decrease the payout each year, while others maintain a consistent payout throughout the term. Some term life insurance types can be extended without undergoing an additional medical check.

Who Needs Term Life Insurance?

Term life insurance is mostly suited for individuals who have dependents, like young children, and want to ensure their financial stability in case of their death. At Senn Insurance Agency serving O’Fallon, MO, we are always ready to help you decide if term life insurance fits your needs best. Reach out to us today.