Published: July 2016
A term policy lets you purchase life insurance for a specific amount of time — for example, 20 or 30 years. If you pass away during the term of the policy, your beneficiaries may receive the policy's death benefit.
Term life insurance was helpful to an Allstate customer's family when the unexpected happened. In this video, agent Mark Jameson tells the story of how life insurance helped a husband provide for his three young children after his wife suddenly died as the result of an automobile accident.
Hi, I'm Mark Jameson. I'm an Allstate agency owner with four offices in the Dallas-Fort Worth area. I often talk to customers about term life insurance.
With a term policy, you purchase coverage for a specific amount of time — for example, 20 or 30 years — based on your family's needs. Your coverage, benefit and premiums typically stay the same throughout the term. If you pass away during that time, your beneficiaries receive the policy's death benefit.
The benefit from a life insurance policy may be used to help replace your income.
I remember one young couple very well — a husband and a wife, both working full-time, who each purchased a 20-year term life insurance policy worth $500,000.
You never want your customers to have to rely on their life insurance, but tragically, the wife later died in an automobile accident. The husband was devastated — as you can imagine. He was left with three daughters under the age of seven to care for on his own.
But we were able to help the husband put together a financial plan, starting with the benefit from his wife's term life policy. The plan also included some proceeds from a life insurance policy through her employer and a settlement from the auto accident.
With those funds, he was able to pay off his mortgage and several other debts so he could work and still afford childcare for his daughters. He was also able to start a college fund for them.
This was an absolutely heartbreaking story. But when a loved one passes away, life insurance may be able to help, and it helped this family cope financially at a very difficult time.