Term Life Insurance | What You Need to Know
By Tom Poblano – There are a few different options available when it comes to purchasing life insurance policies. While you may already be familiar with the more well-known plans including term and whole life, there are other choices available to those looking to secure their financial futures.
Fortunately, you can easily search for the best life insurance policy online by obtaining term life insurance quotes.
Here are some additional things to consider when attempting to make a life insurance comparison:
Term Life Insurance
The most affordable option, this insurance policy provides you with full, valuable coverage for a specified period of time. Terms can range from anywhere between Ten and 30 years, typically available in increments of five years.
Additionally, you may have the option to choose policies only lasting for one year in situations where you need short-term coverage.
Those who are considering term life policies often use the Internet to find term life insurance quotes online to find the best policy to fit their needs and their budget.
Many people opt for these policies because they provide the surviving family with the appropriate finances to pay off bills or other debts that you may have incurred should you pass away during the time that you are covered.
Renewing a Term LIfe Insurance Policy
While each policy will vary and the amounts may change once the term is over, they can typically be renewed up until you reach 95 years of age. Moreover, the premiums are generally low, making these policies a great option for younger people who are just beginning to consider their financial futures.
The only disadvantage to this policy is that the cost will usually be high once the term ends; there is no cash value that you may accumulate with term life policies. However, term life policies are extremely flexible as some insurance companies allow you to convert a term life into a permanent or whole life policy later down the road if you feel that it is the better option.
Whole Life Insurance
Whole life insurance policies increase in value each year and can help you to protect your family while allowing you to prepare for retirement at the same time.
These policies are life insurance plans can be investment vehicles rolled into one, covering you throughout your life and providing you with a guaranteed death benefit.
Benefits of whole life policies include fixed premiums that do not adjust throughout the course of your life, regardless of your age or health condition. You may borrow against these funds as needed to pay for college tuition, medical bills or other needs.
Unfortunately, whole life insurance policies are often more expensive than term life policies. There is no guarantee that these policies will perform the way in which you want them to, and if you take out a loan against the policy, the value of the funds will decrease if you neglect to pay them back.
Universal Life Insurance
Not all companies will offer universal life insurance policies. They are a blend of both term and whole life, providing you with benefits of both policies.
Universal life insurance policies are good throughout your life and focus more on insurance protection than investments. However, the cash value is not as high as a whole life insurance policy and they are typically more expensive than a term life policy.
These policies can be customized to any age you wish to be insured up to. This is known as Dialing Back a premium.
Burial Insurance
These are small whole life plans designed for those 50 and above. Simplified issue with Yes and No questions on an application. These plans will take a variety of health impairments. Read more about Burial Insurance by clicking HERE.
No Medical Exam Life Insurance
These term life policies are typically more expensive. However you may be surprised on how the rates compare to full medically underwritten plans. These plans can also be issued quicker than a full medically underwritten plan. Read more about No Medical Exam Plans by clicking HERE
Summary
While each of these policies have their benefits and their drawbacks, a term life insurance policy will ensure that you have flexible and affordable coverage when you need it most. It is important that you do your research and make an accurate life insurance comparison before choosing the policy that best fits your needs.
Contact me today for a no hassle quote. 512-963-5000 At M2 Insurance, we work with over 60+ life insurance carriers and we are confident that we can find you a policy that makes sense.