Term Life Insurance- An Astute Option
The economic meltdown that hit the world in the recent past was a trying period for several families, several Americans were reported to be struggling with repayment of their bills rather than developing their investment portfolios. With the boost in the economy and an increase in jobs, individuals across the globe are closely monitoring their savings as well as retirement plans. This also includes life insurance investments.
Life Insurance- Do I Need One?
If you are still young as well as single, life insurance is not a grave issue. However if you have dependents like children, aging parents, spouse- any incident leading to your death will be a major hardship added along with the financial crisis experienced by your family. As per a recent study most individuals who have coverage do not accurately understand the terms and conditions of these policies.
In order to derive maximum benefit from your insurance plan, it is important to understand your insurance scheme. Life insurance has proved to be the easiest way in which one can protect one’s loved ones. Those who are younger and enjoy good health may opt for “term” insurance. Term life insurance ensures regular premium for a guaranteed benefit in case the policy holder dies during the set “term”, which may be for 10, 20, 50 years.
Benefits of Term Life Insurance
There are several positives in favour of term life insurance; some of these are enumerated below:
Customizable: Most of term life insurance policies can be tweaked to fit the personal circumstances of the individuals as these depend on the health, period of coverage as well as the amount involved.
One may also easily compare the various schemes provided by the numerous life insurance companies with respect to Term Life Insurance. There are three simple conditions to be monitored- premium, time span and the benefit.
Cheap, Affordable and Focused: Term life insurance ensures flexibility in case of other financial schemes as it allows one to pick the best suited option.
Is it different from Life Insurance policies?
While a “whole” life insurance policy covers the lifetime of the insured individual, grows in terms of value till the eventual death benefit. Term life insurance would give no return after the fixed time period of premium. The policy demands the payment of premium and one may incur heavy penalties if liquidated early. In case of complete Life insurance the policy holders tend to build a high-interest investment account. It may be considered as a hybrid of insurance as well as investing plan.
Yet another important thing to note is that for universal insurance one pays a big fee and there are also no guarantees on the performance of such investments. There are higher costs and greater risks involved in “whole” life insurance as compared to term life insurance.
One may easily get the term life quotes from several websites online. It is also easy to compare the 20 year term life insurance quotes, as these will give you an insight into the investment option of insurance policies. We will provide you with customized solutions to your term life insurance issues.
Category: Life Insurance
