4 Advantages of Term Life Insurance
Navigating
the ins and outs of life insurance can be confusing and intimidating,
especially if you’re looking for your first policy. Term life insurance can be a good fit, particularly for
young families on a budget looking for coverage for a set amount of time. Term
life insurance offers four important advantages.
Less expensive
Term life insurance is more
affordable than whole life insurance because it offers protection for a
predetermined time. The life insurance company is hoping it will never pay out
because you will outlive the term and the policy will expire. Whole life
insurance premiums, by
comparison, are higher because the policies pay out no matter when you die.
More flexible
You have many options when it
comes to term life insurance. Coverage can last as little as one year, as with
annual renewable term life. Or you can lock in rates for as few as five years
if you need to cover a short-term debt like tuition expenses while your child
is in college. Policies also come in 10-, 15-, 20- and 30-year terms. If, for
example, you want a policy that would cover your mortgage and your
children’s college tuition, a 30-year policy might be a good match. As these
needs disappear over time, so might your need for a policy.
Good for young families
Because term life doesn’t build
cash value and only covers a specific period, it’s generally less expensive
than whole life insurance and a better value for young families. Many young
families are financially stressed, shouldering the costs of caring for small
children, a mortgage, perhaps an auto loan, saving for college and retirement
and other expenses. Term life insurance can provide peace of mind without
gutting your wallet.
Simplicity
Term life insurance is easy to
understand, which makes it simple to shop around and compare rates. You need to
make only three main decisions: coverage amount, length of term and preferred
company. As long as you pay the premium, you’re covered for the duration of the
policy.
For many people, term life
insurance is a simple, affordable way to safeguard the financial health of
loved ones if something happens to you.
Source
vsperos@sperosfinancial.com 602-531-5141 Vasilios "Voss" Speros
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