A new job, a new baby, a new home. Families plan for life’s biggest milestones, but preparing for the unexpected can be harder. In a five-part series, Eleos Life CEO Kiruba Eswaran is helping break down life insurance one piece at a time, beginning with one of the most straightforward options: term life insurance.
We Are Austin host Trevor Scott welcomed Kiruba Eswaran, CEO of Eleos Life, to discuss how term life insurance works, how families can determine their coverage needs, and what to consider before purchasing a policy.
We Are Austin host Trevor Scott welcomed Kiruba Eswaran, CEO of Eleos Life, to discuss how term life insurance works, how families can determine their coverage needs, and what to consider before purchasing a policy.
Watch the full video above for the first conversation in our five-part “Life Happens” series with Eleos Life.Where does a family begin?
Before considering insurance, Eswaran recommends building an emergency savings fund.
“Savings is for really high-frequency, low-impact events, like your car breaks down or something stops working at your home,” Eswaran explained. “Insurance is really about high-impact, low-frequency events that savings can’t match.”
He suggests starting with enough savings to cover one month of essential expenses, with an eventual goal of three to six months.
Understanding term life insurance
Term life insurance provides coverage for a predetermined period, typically in exchange for regular premium payments. If the insured person dies while the policy is active, the designated beneficiaries generally receive the death benefit.
Because coverage expires at the end of the term, these policies tend to be less expensive than permanent life insurance.
Eswaran recommends determining coverage through a needs-based approach.
“What are the financial obligations that your income is supporting? It might be rent. It might be paying off the mortgage, your children’s educational expenses,” he said.
Those financial responsibilities can help determine both the amount of coverage and how long the policy should remain active.
Choosing the right coverage
Eswaran also discussed the differences between independent agents, who can offer policies from multiple insurers, and captive agents, who represent a single company.
“I would always recommend going with someone who has access to multiple insurance options,” he said.
Consumers should also consider an insurer’s financial strength and whether optional policy features, known as riders, meet their needs.
Term life insurance may be particularly useful for people with financial obligations that have a defined end date, such as a mortgage or supporting children through school.
Ultimately, understanding what a policy covers, how long it lasts, and what it costs can help families make more informed decisions.
Keep watching “We Are Austin” for more conversations in the five-part “Life Happens” series with Eleos Life.
Visit Eleos Life online for additional information.
Insurance products, availability, premiums, and coverage vary. Review policy terms and consider your individual financial needs before purchasing coverage.
Life happens: Eleos Life breaks down the basics of term life insurance