A Guide to Term Life Insurance
September 1, 2017
Types of Life Insurance > Term Life Insurance
Life insurance is crucial for everyone to have, but it’s important that you understand the types of life insurance before purchasing a policy. There are many different types of life insurance, and these different types offer differing benefits that will suit different people depending on their age, family size, financial situation, health, etc. One of the most popular types of life insurance is term life insurance, which provides low-cost insurance coverage for a set period of time for people who want to be able to provide for their survivors in case of their death.
What does a Term Life Insurance policy include?
The most important fact to know about term life insurance is that it, as its name indicates, provides coverage for a predetermined number of years. This is because the dollars you pay into term life insurance premiums are only there to provide a death benefit to your beneficiaries if you die during the specified term. According to CNN Money, many people find term life insurance appealing because it can give them a low-cost safety net of life insurance while they save money in other areas, which will allow them to afford a more expensive but more permanent life insurance policy later in life. Term life policies typically are aimed at younger customers. Because the coverage is for a specified time period, the cost of the premium is lower for younger customers, though it may increase with age.
Why should I use Term Life Insurance?
Depending on what your current job, financial, and family situation is, term life insurance may be the best option for you. Here are some of the pros of term life insurance:
- It’s cheap. According to the Wall Street Journal, a term life insurance policy is on average 2.5 to 4 times cheaper than a whole life insurance policy.
- It’s temporary. Term life insurance is popular among families because it can give them coverage only during the years that their children are dependent upon them. Once your children are living and working on their own they may no longer be your dependents. Therefore, for the first twenty-five or so years you will likely want to have coverage in the event of an unexpected death. Or, if you would rather have a whole life policy but can’t yet afford one, you can purchase a short amount of term life insurance to keep you covered until you have the finances for a whole life insurance premium.
- It’s easy. In most cases, applying for and receiving term life insurance coverage is a short, simple process, allowing you to get the coverage you need quickly. In addition, certain policies can be converted to whole life insurance policies before a certain age, which will allow you to retain coverage and grow cash value.
About National Catholic Society of Foresters
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