Is Term Life the Best Choice For You?
Why are Term Policies so Popular?
When I spoke to dozens, if not hundreds, of people who were seeking a life insurance policy, most of them were interested in term. Why? Well, many financial experts do advise this form of coverage for several reasons.
Premiums are lower. Since the coverage is temporary, and insurer does not take a risk for a whole life. Even if the period seems like, like 10, 20, or 30 years, the contract will still expire. Since that same insurer will underwrite each policy, this means they expect the insured person to survive that term. This minimizes the risk, and that is why they can offer lower premiums.
It is pure coverage. Other forms of life insurance may also offer a savings or investment feature. But again, many consumers would rather find other ways to save their money, and they just want to buy a policy that will cover their lives.
Lower premiums also give a person the opportunity to buy more coverage. If a younger family wants to make sure that their mortgage can be paid off, a spouse can be supported, and children can be educated, they will probably need a few hundred thousand dollars worth of face value on a policy. An affordable way to accomplish this is, of course, term life.
You can also find cheaper premiums today. We get to enjoy longer and healthier lives than ever before. Because of that, it may be time to evaluate the life insurance you bought in the past, and compare it to what you can buy today!
Consider your present needs vs. what your needs where when you purchase a policy a decade or more ago. Your house could be closer to being paid off, and you may need less coverage. Or you may have a more expensive mortgage now, and you need to add to your coverage.
Older people can still find coverage too. It is not impossible for reasonably healthy people in middle age, or even retirement years, to find a policy either. You can still buy life insurance at 50, 60, or even 70 from some top companies.
It is also easier to apply now. You can even find online quote forms, online applications, and no physical policies. This means that the process of buying a policy is simpler and quicker than ever before. Fully underwritten policies, that require physicals, can take weeks or months to complete.
Everybody has different needs, and you will not find one best plan for each person. But a term life insurance contract is a good choice for many people.
It only takes about 4 minutes to fill out the new online quote forms. So if you have put of the purchase of life insurance because you thought it would be too complicated, it may be time to get started.
