Term life insurance is a policy that insures your life for a defined time frame. When this time is over, the life insurance policy terminates. Term life insurance is an excellent choice for those people who are in the early years of their lives, in good physical shape and need a policy that provides for their beneficiaries should they die. Term life insurance is typically very low priced, at times less than $10 per month. This can cover a policy that has coverage of many hundreds of thousands of dollars.
Evaluating and deciding between term life insurance policies is simple due to the fact that there are no choices or unknowns that are included in term life insurance policies. However, there are some things that are important to consider before you evaluate different policies:
1. Ask yourself how long you want the policy to be. All term life insurance policies have a defined number of years that you can choose from. It is possible to buy a term life insurance policy that protects you for one year or up to 30.
2. Determine what amount of insurance you need. It is easy to get quotes because term life insurance policies cover a predetermined amount of time and a set amount of insurance. Just make sure to request the same coverage and same length of time when getting quotes. Otherwise, you may think you’re getting great coverage at a good price even though that isn’t so.
3. Since it doesn’t cost a thing to get insurance quotes, make sure you get a few to compare. Don’t pick the first one without comparing it to others. You want to be sure that what you choose is a good fit for you and your family.
There are many advantages to buying term life insurance. Here are a few:
1. While whole life insurance is designed chiefly as an investment, it is very expensive, frequently costing thousands of dollars a year where as term life insurance is very affordable, costing hundreds per year for most purchasers. A sample term life insurance premium for a 35-year-old male who is a nonsmoker and in good health would typically be under $10. This would be for a $100,000 policy for a 10-year term (even less for a female).
2. Term life insurance is straightforward and lets you choose the options. Your monthly premium varies according to the length of the policy (typical terms are 10, 20 or 30 years) and the amount of protection you select (you can have a policy anywhere from $100,000 to $1,000,000 or more!).
3. With term life insurance, you keep your well-deserved money and can invest it on your own. This is an especially good idea if you are skilled at investing because whole life insurance money is usually invested very traditionally, not taking much risk. So, term life insurance is better if you want to save your money yourself or make your own decisions regarding investments.
4. Term life insurance is an excellent choice for short-range requirements, such as college education costs or mortgage payments. Children would have their college tuition paid and the policy would expire. Or a policy could be bought to cover the costs of paying off the mortgage.