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Life is Tricky, Term Life Insurance is Not

If you know very little or nothing about term life insurance, make sure you take the time to read the following valuable piece of information.

Term Life Insurance

Many people that have purchased a permanent life insurance policy can testify that this type of plan can become quite costly. What these people may not realize is that there is an affordable alternative available to them, which is term life insurance. Keeping this in mind, there is no reason for a person to leave their loved ones uncovered due to additional expenses that will be added to your monthly expenses. Instead, a term life plan can be obtained. Read also: Simple Keys to Understanding Life Insurance Policies.

Term vs Permanent

Unlike a permanent life plan, term insurance allows a covered individual to choose their coverage amount, as well as how long they wish for the policy to stay in affect.

Advantages of a Term Life Policy

  • A permanent life plan is expensive, whereas, a term policy is not. In fact, a permanent life plan can at times cost covered individual 1000′s of dollars a year. Term on the other hand, generally only cost a few hundred dollars a year. By searching around for the right policy provider, a healthy, non-smoking person in their mid-thirties, can usually find a 10 year life insurance term policy, coming with $100,000 worth of coverage, for less than ten dollars a month.

  • Unlike permanent life policies, term plans are easy to understand, which makes it easier for a person to choose a policy that best suits his or her needs. Generally, all that consist of a term plan is making monthly premium payments that are based on the length of the policy, as well as the coverage that is initially decided upon. In most cases, term life policy providers allow covered individuals to purchase a plan in either 10, 20, or 30 year length terms. Most providers also provide coverage amounts ranging from $100,000 on up. Read also: Why Life Insurance for Children is a Great Investment.

  • When a person obtains a term life plan, he or she is then able to invest the saved money as he or she sees fit; this is unlike a permanent life plan, where investments are tied to the policy. It is important to remember that when a person allows his or her insurance company to invest the money for them, the policy provider tends to be conservative with the money, which means a low amount of return is generally obtained. Anyone with any skills in investing or saving money should opt with a life insurance term plan, as this will allow him or her to invest money at one’s own discretion.

  • A term life policy is also advantageous when it comes to covering one’s short term needs, such as the ability to pay for a mortgage or a child’s college expenses if the covered individual was to become deceased. Many people that have purchased this type of policy buy one that will cover them until their children have graduated from college or until the covered individual’s mortgage has been paid off. Read also: How to Find Affordable Life Insurance Quotes?

Life Insurance Terms can be Tricky, Here are Some Tips

  • Always purchase enough to meet your needs. When it comes to life insurance, do not skimp.
  • Always make sure any dependents you have will be provided the financial needs to live comfortably until they become able to provide for themselves in the event of your death.
  • It is best to purchase a term life plan while you are healthy, and while you are young if possible.
  • Never lie on your policy, or it may not pay out in the unfortunate event that you do die.
  • Always shop around for life insurance quotes, as this will ensure you get the best type of policy at the most affordable rate possible. Read also: Consider More Than Just Price When You Compare Life Insurance Quotes.


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