You work hard each day to cement your family’s financial future. It certainly would be unfortunate to have your efforts fall by the wayside due to unforeseen circumstances.
Term life insurance offers a policyholder’s family many distinct advantages in the event of their demise. Defined as temporary insurance, term life insurance benefits cease when coverage ends. Coverage is offered in increments of 5 to 35 years. When covered, the insured can tie down financial protection for his loved ones should he pass away unexpectedly.
Because you are covered for only a set period, term life insurance costs less than permanent types of life insurance. You can opt for a term policy where the premium typically increases each year or a premium that remains fixed for the time of the coverage. Usually, premiums that cover a broader period are generally more costly than if you select a term policy for, say, a year.
The primary difference between permanent life insurance policies and term life policies is cost. That’s because, with permanent life insurance, you are essentially sealing the cost you must pay towards the annual premium. Also, most permanent policies allow you to accumulate cash surrender value during the policy’s life.
Keeping that information in mind, there are still many sound reasons why anyone supporting a family would include term life in his financial portfolio.
Maybe the number one reason is cost. Term life insurance is offered at a substantially reduced amount compared to other types of life insurance. This feature alone makes it very attractive to the consumer and a practical choice to make regarding coverage.
One of the benefits is the financial safeguard that is built in for the plan holder’s family. Upon the insured’s death, members are guaranteed a certain amount based on the parameters of the coverage chosen.
Another excellent benefit of term life insurance is the assurance that education costs associated with higher education can be covered entirely. Knowing that your children’s future can be taken care of despite your passing is a great relief.
Coverage of Remaining Debts
Term life also has the built-in promise that his family will not incur any remaining debts left by the policyholder. This pledge is another determining factor in deciding for term life.
The insurance assists family members with funeral costs, covering the entire amount, thereby releasing them from any financial liability.
As noted, term life insurance offers many excellent reasons for anyone with a family to purchase it. Adding term life to your financial portfolio is a responsible, economical thing to do about the overall well-being of those you care about the most.