There are many options when it comes to selecting a life insurance plan but term life insurance policies are one of the most popular choices because they offer flexibility at a low cost for when you need life insurance the most.
What Are The Benefits Of Term Life Insurance Policies?
Term life insurance policies offer more flexibility at a lower starting cost. They also are easier to understand and buy, which make them more appealing to many people. Not only can you choose the length of the policy, but you can also choose the amount of life insurance coverage that you would like.
A term life insurance policy offers coverage for a set period of time, typically 10 to 30 years, at a locked rate. However, once the term limit of the policy is reached, the premium to maintain the same coverage will increase.
Who Is Term Life Insurance Right For?
Term life insurance policies are typically better suited for younger people who financially support their family and want to protect their family’s interest. This form of life insurance is more affordable than a permanent life insurance policy.
A term life insurance plan gives you the flexibility to add protection to your family’s investments when you need it most, such as while paying off a mortgage or college loans. If something were to happen to the primary earner in your family, a term life insurance policy can protect the remaining family members from being responsible for the remainder of the debt.
What Is the Difference Between Term Life Insurance and Permanent Life Insurance?
One of the main differences is that permanent life insurance offers an investment opportunity that term life insurance does not. For example, permanent life insurance builds a cash value that the policyholder may borrow against tax-free to cover the costs of retirement or education while term life insurance has no cash value. However, this benefit comes at a higher initial cost and may not be worthwhile for everyone.
If you choose a term life insurance over permanent life insurance, you can use the money you save to invest on your own. This is especially beneficial if you happen to know the right way to invest versus letting the insurance company do it for you.
How Do I Get a Term Life Insurance Plan?
Contact your insurance agent to find out more information about what is term life insurance and how to get the right plan for you. You will likely need a medical examination to determine your current health and will be asked about any risky behaviors. Be sure to plan ahead and purchase enough life insurance to cover any costs, from paying off a mortgage to making sure your family will be taken care of financially until they are able to provide for themselves.