Who Needs Term Life Insurance?
Reader’s Question:
My sister has a life insurance policy and she convinced me to get one. She has the term life insurance. I’m thinking to get that too but before I purchase one, can you tell me more about term life insurance first?
Aubrey
Augusta, ME
To explain term life insurance in simple terms, this type of life insurance only covers you over a specified period of time; a lot of insurance companies offer no medical exam with this policy. Whole life insurance on the other hand, will cover a person all throughout his or her life. In addition, term life insurance does not have cash value meaning to say, if you live past the term of your policy, you or your beneficiaries will not be getting any benefits
In addition, premiums for term life insurance policy may not be fixed hence it may change from time to time. However, you still have the option to avoid this from happening. For example, you can ask for a guaranteed level premium term life insurance policy which guarantees a specified period all throughout the term of your insurance policy.
Term life insurance has many advantages. For one, it is more affordable. It offers the most affordable premiums and promises high death benefits. In addition, it’s simple. In fact, term life insurance is the simplest form of insurance policy that is available in the market today.
Moreover, it has competitive rates. Also, it is flexible. It includes options for “convertability” and “renewability.” The renewability option makes it possible for policy owners to renew their insurance policies without having to undergo medical exam. On the other hand, convertability option allows policy owners to convert their term life insurance policy to its equivalent whole life policy which has cash value.
Lastly, term life insurance policy also has its “waiver of premium,” meaning if the times comes that you are unable to pay premiums, the insurance provider will waive the payments of the premiums over a specific period of time. This feature however comes with additional charge.
Category: Reader Questions
