Many experts agree that an important part of a well-rounded financial plan is term life insurance. Life insurance provides death benefits to your beneficiaries and that can be invaluable. The insurance money can replace some of the income you were earning. This can help provide a stable financial future for your spouse and preserve any investments, savings, or other assets you intended on paying off. The Benefits Of Term Life Insurance: A term life insurance policy can provide financial stability when you need it most in your life. This type of insurance policy provides coverage to the insured over a certain length of time. One key characteristic of level term life insurance is that the premiums remain level for the life of the policy (whether it be 5, 10, 15, 20, 25, or 30 years). However, you may opt for "yearly" renewable term life insurance which has a lower initial premium. With this option the premium rises each year. Be advised that yearly renewable term life insurance is only cost effective for a few years because of the increasing premiums. Before you invest in term life insurance you need to decide if you are looking for a solution that runs more than a few years. A level term life insurance policy can cost less depending upon the number of years you'll require coverage. Reasons For Buying Term Life Insurance: Term life insurance cost less than permanent insurance. A potential buyer may have young children at home and he/she has to protect his/her income. They may have bought a house and now have a 30 year mortgage for $500,000. Hence, they would need to purchase a level term life insurance policy for $500,000 30 year term to cover their mortgage. If something were to happen to the proposed insured between now and the next 30 years the insurance company would write a check for the full face amount of the term life insurance- policy for the survivor to pay off the mortgage and the balance would be paid to the designated beneficiary. Term Life Offers Conversion Options: You can convert all or part of the term insurance to a permanent life insurance product without having to prove evidence of insurability. This type of "conversion" is called a convertible term life insurance policy and means that during a specified time the policy can be converted from term life to permanent insurance. For instance, if you took out a term life insurance policy the amount of coverage you need may change down the road. The need for some life insurance may still exist. The conversion option on a term life insurance policy gives you the option to convert over a certain amount of the policy to cover final expenses. Term life insurance can be bought at an extremely low price and can be very attractive to young families. You can lock in a term rate at an early age while you are young and healthy and the rate is guaranteed for the full length of time on a guaranteed level term. It is also possible to combine term life insurance with a permanent life insurance policy. During the earlier years of the policy you'll have more coverage. As you get older there's a good chance you may not need as much insurance as you originally applied for. For example, the children may have grown up and the house is paid off. So the need for so much coverage is not there and the term insurance will expire. The client will still have the permanent insurance policy that was put in force at the same time the term insurance was issued. Now the client can use the permanent life insurance to pay off final expenses down the road. Reasons Why You Might Need Life Insurance: 1. Protect your family’s home by allowing them to pay off your mortgage. 2. Maintain your family’s standard of living. 3. Provide retirement income for you spouse. 4. Pay off outstanding debts you have incurred. 5. Use insurance payments in the family business. Term Life Insurance Policies: 1. Term policies are a practical way to receive the most coverage for your dollar amount and can also meet a wide variety of personal and business needs. 2. Term insurance is available for a certain period of time (10,15,20,25,30 years) and wil benefit your beneficiary if anything happens to you during this time. 3. Term life insurance policies do not accumulate cash value but many allow you to convert your policy to a permanent policy within a specific time period.
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Many experts agree that an important part of a well-rounded financial plan is term life insurance. Life insurance provides death benefits to your beneficiaries and that can be invaluable. The insurance money can replace some of the income you were earning. This can help provide a stable financial future for your spouse and preserve any investments, savings, or other assets you intended on paying off.
Term Life Insurance article submitted by Roger Kelley. Up to $250K coverage in minutes. A+ rated carrier. Instant policy at at Term Life Insurance This and other unique content term life insurance articles are available with free reprint rights.
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