What are the Benefits of Term Life Insurance?
One of the biggest benefits of term life insurance is that it helps your family replace your lost income upon your death. Unlike permanent life insurance policies which remain in effect for your entire life (assuming your premiums are paid on time), term life policies remain in effect for a specific term or period of time.
4 Benefits of Term Life Insurance
To determine if term life insurance is a good fit for you, read through some of the benefits below.
Term life insurance is typically more affordable than permanent life insurance because it only provides protection for a set amount of time. Policy premiums are determined by your insurance carrier. Factors include age, health, occupation and others. Traditional term life insurance policies usually require a medical exam and a health questionnaire to determine eligibility. In general, a healthy, non-smoking person in their 20s will pay much less than a 60 year-old smoker, for example.
Although the death benefit of a term life insurance policy can be used any way the beneficiary chooses, the funds are commonly used for:
- Funeral and Burial Expenses
- Loss of Income
- Medical Bills
- College Loans
- Business Expenses
Term life policies enable you to choose how long you want your policy to last. Some people purchase a term life policy that will last long enough to cover their children while they are still financially dependent. Others purchase a term policy to ensure their spouse will be able to continue to pay their mortgage. As these financial needs disappear, so might your need for life insurance policy.
Term life insurance policies are pretty cut and dry: as long as you pay the premium in full and on time, you are covered for the duration of the policy. When choosing a term life policy, you'll simply decide:
- The coverage amount
- The length of the term
- The insurance company you prefer to work with
A licensed life insurance agent can help you better understand life insurance. Speak with a licensed agent at 1-855-303-4640.