The Points of Term Life Insurance
Why Term Life?
Permanent life insurance can be costly. The less expensive and most realistic alternative is term life insurance. This is the most common form of life insurance and the one most advertised on afternoon television. Permanent life insurance-whole life is the most common-can be costly, it's true. If you are not aware of the alternative of term life, you may make the decision to not get any life insurance, and that can hurt your dependents in the case of tragedy.
There are three basic types of term life insurance; yearly renewable, level premium and decreasing. The amount that is the most typical for a term life policy is around $100,000 and the typical term is around 10 years. There are some good arguments for term life as opposed to whole or permanent life insurance; these are some of the better points:
Term life insurance is very affordable. You can research getting life insurance online, both quotes and coverage in side by side comparisons. You'll find that term life is much more affordable than whole life. There is no investment or cash value with term life, so the savings are passed to the buyer.
Term life is simple and easy to understand. You pay for your premium and you get the amount of the insurance policy, easy as that. If you purchase $100,000 in policy, you get that much. No strings, no extras.
If you know anything about investing and want to do it yourself, buy term life insurance and take the extra you would have spent on a whole life policy to use as an investment in stocks or bonds. With whole life, you are automatically paying higher premiums for the company to invest for you-this is where the cash value comes in, but the broker gets his cut, too.
Short term goals are best for term life. Buy the amount of policy that is the same as what you owe on your mortgage or the amount of tuition you will still owe on the kids college and you're set in case anything happens to you. Don't buy more than you need, but be sure to buy the full amount of what you will. This is one of the best points for term life.
Life insurance is great for when you are healthy, and plan on staying that way. There is usually no medical examine needed, but don't lie when filling out the paperwork. If you smoke, say so. An investigation can terminate your policy immediately and even lead to fraud charges.
Yearly renewable term life insurance is renewable at the end of each premium year, so the low rates can stay the same if your situation hasn't changed. If it has, you can still get a good rate-unlike whole life wherein you may have to submit to a medical exam every year, whether you need it or not.
You can find out which type of term life is best for you and your family by taking a needs assessment questionnaire online. This is for your information only and no salesperson will call. To determine how much life insurance you need, you will need to have on hand how much you still owe on your home, your overhead for six months to one year after your death, and some other information. There are no links, so no one but you and the calculator knows your personal finances. No personal information is asked for that could lead to phishing, so take a virtual tour and find out about term life insurance today!
