What Are Term Life Insurance Policies?
Shopping for term life insurance means knowing all your options and what they have to offer. While there are many types of life insurance policies to choose from, one that cannot be overlooked is “term.” Simply put, term life insurance policies are among the most popular and this will probably be the case for many more years to come.
There are many reasons why consumers are attracted to term life insurance policies. For one, they are cheaper than others, such as whole life. When you buy term life insurance you are agreeing to coverage for a predetermined period of time, such as 10, 15, or 20 years. This is not the same with whole life insurance in which your policy remains active until the day you die.
Even though you are only getting coverage for a limited period of time, there are benefits of buying term life insurance. For many, the main reason to buy this type of insurance is the low cost. Since you are opting for coverage for a term, as opposed to your whole life, the cost is much less. As the average life expectancy continues to rise the cost of term life insurance is going to continue to decline.
What do I do when my term life insurance expires? This is a question to answer before you purchase one of these policies. You have a couple of options. One is to buy nothing and live without life insurance. This may be doable if all of your children are grown up. On the other hand, you may want to purchase a new life insurance policy, term or another type, once it expires.
As a consumer, you have the right to customize your term life insurance policy by choosing the amount of coverage as well as how long it will last. So, even though you do not get coverage for your entire life, you can still make decisions that will benefit you during the term of your policy.
Now that you know the basics of term life insurance it should be simple to decide if buying a policy is a good idea.