Advantages of Term Life Insurance

Among the many different types of life insurance policies available today, term life insurance remains a popular choice as there are many advantages to this type of life insurance.  While it’s true, it’s not the best insurance for everyone; it should still be reviewed and considered as a viable option. Some of its major advantages of this type of policy include affordability, simplicity, level premiums, and level payouts.

Affordability

Term life insurance is often considered when a large face amount is needed but the customer does not have enough room in their budget to pay for an expensive permanent or “whole life” policy.  Since 30 year term polices are still quite a bit less costly than a permanent plan, but can cover a person for a large portion of his or her adult life, they are considered to be a good alternative. On top of this, the policy can be altered to match individual budgets which is what makes it a great option for young families with many expenses.

Easy to Understand

Some life insurance policies have the ability to accumulate large amounts of cash value.  While this is a very nice benefit, it also becomes difficult to understand the policy.  Many people are sold a bill of goods when it comes to these types of policies and when the money is needed, they find the policy doesn’t work the way they thought it did.  The benefit of a term life insurance policy is that it’s simple and straight forward.  There aren’t confusing grids or charts to understand and consumers never need to worry about the market affecting their face value.

Level Premiums

There are also level premium term life insurance options available. This means the premium stays the same throughout the term of the insurance.  In some cases, premiums can be paid up front, or in large chunks at the beginning of the term.  In most cases, however, premiums are paid monthly throughout the duration of the term.  In either case, the premium is determined up front and does not change.  This allows for peace of mind because customers can purchase a policy and know they’ll be able to afford it for the entire time they have it.

Level Face Amounts

One of the greatest things about term life insurance is the fact that the face amounts do not change.  If you purchase $50,000 of coverage, you can rest assured your loved ones will receive $50,000 if you pass away while the policy is active. There is no worrying about whether enough money was paid into the policy or not.  If the policy was taken out a month before the policyholder passes away, the death benefit will still be paid in the agreed amount, regardless of how much money was paid in premiums.

 

While term insurance is not the right fit for everyone, for most people it’s not only the most affordable choice, it’s also the best choice.  However, it’s always a good idea to review all available options before choosing a policy. As a last note, after being quoted don´t be afraid to talk with the agent for some additional assurance and clarification on the various aspects of the policy that you chose. After all, the decision will be for the financial safety of your family should anything happen to you.

Be Sociable, Share!

Comments are closed.