4 Benefits of Term Life Insurance

March 9, 2023

When choosing a life insurance policy, term life insurance is often the preferred option for younger adults. As you start exploring your policy options, you will find several choices, each with its own advantages. If you wonder what makes a term policy an ideal choice, there are advantages that you should understand.

Term Life Insurance Is Affordable

One of the reasons that many life insurance buyers choose term life is its affordability. Since term policies are only enforceable through the policy term, the premiums are lower for this coverage than what you would pay for lifetime life insurance.

Term life is a great place to start when you want life insurance without breaking the bank. You can control your costs further by choosing different term periods or lower death benefits.

Term Policies Are Flexible

Another of the term life insurance benefits is the flexibility of the coverage. Whether you are looking for insurance for a specific period or want to ensure that your family can pay off your mortgage, term policies have options.

You can find term policies that last for 10, 20, or even 30 years. Consider how long you want that death benefit available before buying. There are term life insurance policy options for the time period you need.

Term Coverage Is Ideal for Young Adults

Whether you are just starting college, buying your first home, or beginning to raise a family, term life is a great choice. This coverage offers options that fit limited budgets but still gives you the peace of mind that your family has financial coverage if something should happen to you.

You can opt for a whole life policy and add a term policy when you have children to provide for and keep your whole life policy for the next stage of your life, when you may not need as much for your beneficiaries to sustain themselves.

Maintaining Term Life Insurance

Suppose you have never explored the life insurance requirements for different policies. In that case, you need to know that life insurance is medically underwritten. You will be asked health questions.

You decide how long you want the coverage to last and how much of a death benefit you wish your family to receive. Your policy remains in force for the full term period, provided you pay the premiums on time.

When you decide that term coverage is the right choice, you may wonder what happens to the policy at the end. If you live out the full term of your policy, you may have the option to convert your term policy into a whole-life option. Alternatively, you can opt for another term life insurance policy, even if you decide to change the term for your new coverage.

Keep in mind once your term ends and you wish to purchase another term policy, you will need to go through underwriting once more.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.