What You Should Know When Buying Term Life Insurance

Is term life insurance for you?

If you’re considering buying life insurance as a small business owner, you may not be aware that there are two types, term and permanent. Term life insurance is typically cheaper than permanent life insurance because permanent life insurance accumulates cash value* that you can access during your lifetime. Term life insurance does not have the same features and only provides coverage for a specific amount of time. If you’re looking into life insurance options and are considering term life insurance, there are a few questions you may want to ask before settling on a policy and plan.

  1. Why are you buying it?
    • Typically, term life insurance is purchased for a period of time or a specific need that will be ending and is not long term. If your reason for buying is something that is a longer period of time or longer-term life need, you may want to consider permanent life insurance.
  2. What are the terms?
    • Is the term life insurance annually renewable or level term? What period of time should you buy the policy for and how long is it good for? What is this policy intended to cover? Can this term life insurance policy convert to permanent life insurance? All of these questions are questions that you will want to ask upfront before choosing and signing for your term life insurance.

These are just a couple of the questions that The Bailey Group (TBG) has identified that can help you when considering purchasing term life insurance as a business owner. Contact us today to learn about all of the resources that we have to offer and how our team at TBG can help protect you and your business!

Contact us today or call 866.207.8988

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