Benefits of a Term Life Insurance Plan
Term life insurance is a popular option among people for a few reasons. For one, it’s the most affordable. This goes back to it being rented rather than bought. When you buy life insurance with a whole life plan, it’s bound to be more costly.
Another benefit is that you aren’t locked into only having term life insurance. You can always convert to whole life. This differs from whole life because you can’t backtrack to term with a permanent life policy. Also, term plans can be used as additional coverage to add to whole life plans.
Another benefit is that you can choose the term. This means you won’t have to pay for unnecessary insurance. This can allow you to invest your money in other areas since the plan is more cost-effective than whole life policies. It’s a great plan to start out with since you always have the option to switch over to whole life insurance.
Cons of a Term Life Insurance Plan
The negatives to having term life insurance is that it only provides death benefits, leaving no option for added cash value. Also, unlike the fixed rates of whole life insurance, term life insurance gets more expensive after age 40.
Term life insurance can also be tricky to time. The policy will only pay beneficiaries if you pass away in the term’s window.
Who is Term Life Insurance for?
Term life insurance can be a great way to get started with a life insurance policy. Since it’s simpler than whole life, you can get started with this option and then switch to whole life insurance if need be. Term life insurance is a great way to take proactive care in keeping your family financially stable even after you’re gone.