Best Term Insurance Plan 2025 life Insurance

term life insurancelearn:at least three things about term life insurance what term life insurance is how term life insurance works and why term life insurance is the only type of life insurance we recommend at Ramsey Solutions and stick around until the end of the video to learn how to find the right term life insurance policy for you

Understanding Life Insurance Basics

we all know you insure your car with car insurance and you insure your home with homeowners insurance but how do you insure your life with life insurance well unlike your home or car your life can't be replaced if it's damaged in an accident or a natural disaster life insurance is a bit different life insurance takes care of those who depend on your income AKA your family if anything happens to you with the right policy you can provide for them even after you're gone which if we're being honest is not a fun thing to talk about but taking the time to figure it all out now is a million times smarter than leaving your loved ones stranded if you die unexpectedly

The Only Recommended Type: Term Life Insurance

now here at Ramsey Solutions we only recommend one kind of life insurance term life insurance and I'm guessing that right now many of you are asking what is term life insurance

What Is Term Life Insurance?

term life insurance is a type of life insurance policy that lasts for a set number of years or a term it's usually sold in increments of five years anywhere from five years 10 years 15 years all all the way up to 30 years now the longer the term the higher your life insurance quotes will likely be if you die before the term is over the insurance company will pay the death benefit if you die after the term is over the insurance company doesn't pay

How Term Life Insurance Works

term life insurance is like any other insurance in that you pay a monthly premium and in return the insurance company agrees to pay your beneficiaries if something happens to you basically it's a contract between you and the insurance carrier to determine the amount of your premium the insurance company looks at your age Health life expectancy and a few other factors so it's best to get life insurance when you're young and healthy because the older you get the more it costs

How Much Coverage You Need

now you'll need 10 to 12 times your annual income in life insurance that way your family can invest the death benefit from your policy in mutual funds earning an average return of 10 to 12 percent then they can replace your income without touching the original amount and be financially stable for years

Choosing the Right Policy

when you're picking out a term life insurance policy it's important to get price quotes from different insurance carriers you can also use the term life calculator or our quote estimator here on our website while you're here you can also connect with our Ramsay trusted provider Xander Insurance who will help you get multiple quotes and walk you through the process of getting insured it's also a good idea to check with your employer to see if they offer a group term life insurance policy employer policies usually don't cover all your needs but they can get you part way there plus employer policies are usually free

Policy Renewal and Self-Insurance Goals

when your policy is about to expire you can renew it for another term although this depends on your age and life circumstances if you have a level term plan your premium rate will probably go up when you renew since you'll be older and more expensive to insure but there's also a chance your premiums could go down if you choose a lower death benefit ideally you should shoot for being self-insured by the time your policy expires that means you're debt free with a fully funded emergency fund and a growing retirement account you can learn more about the baby steps and your path to becoming self-insured by clicking on the guided plans tab on our website

Summary and Recommendation

to sum it all up we recommend a level term life policy with coverage 10 to 12 times your income and a term that's 15 to 20 years in length remember life insurance has one job to replace your income if you die it's there to provide for your loved ones not make them Rich if you're in the market for new life insurance or you want to talk to an expert we recommend Ramsay trusted provider Xander Insurance don't let another day go by without being protected