Why Purchase Term Life Insurance?
[social_share]Most people are familiar with the terms and conditions of standard whole life insurance policies. What they tend to associate with such policies is their long term nature, which usually remain applicable for the majority of the policy holder’s life. But there is an alternative to whole life policies, which is known as term life insurance, and there are certain benefits that it can offer consumers in place of a traditional whole life policy. Below is a list of the benefits of term life insurance.
Cost.
Because the terms that are set on term life insurance policies tend to be considerably shorter than those on whole life insurance policies, the cost of premiums can be significantly cheaper for the policy holder in the long run. For instance, instead of paying $200 per month over 30 years of a whole life insurance policy, a term life insurance policy holder would only pay $100-150 each month for anywhere from 5-10 years or more. This adds up to substantial savings for the policy holder and can lessen the burden on their budget, at least for the immediate future.
Term flexibility.
The standard term length for whole life insurance policies is 30 years, although some can be as low as 20 and yet others can provide as high as 40-50 years of coverage. Term life insurance, on the other hand, can go as high as 20 years but typically runs for 5, 10, or 15 years, depending on the preferences and needs of the policy holder. For example, if a policy holder wishes to obtain life insurance coverage but they no longer have dependants or they simply want to free up some income, then term life insurance allows them to easily forgo the standard period of coverage of 30 years by customising their coverage to a smaller term length.
Specialised coverage.
With term life insurance policies, the coverage that a policy holder selects can increase or decrease over time in, accordance with their needs. If the policy holder has a term life insurance policy set for 15 years but feels confident that they will not need as much coverage towards the end of that policy, it is common for term life insurance providers to allow the policy holder to diminish their coverage as the life insurance plan draws to a close. This can often result in even greater savings since the policy holder will be able to pay less for lighter coverage. The reverse is also true. If the policy holder thinks they may need more benefits and features as they grow older, term life insurance providers often allow them to increase coverage as the policy nears expiration.
