Sure, we have all heard of “Term Life Insurance“. We hear countless commercials about it on the television, radio and see the ads on websites everyday. And most people have a basic understanding of what life insurance is and what it does. But do you understand the differences in the types of life insurance that you can purchase?
All life insurance is not created equal. Let’s look at three popular types of life insurance policies today: 1. Term Life Insurance 2. Accidental Death Life Insurance 4. Whole Life Policy Insurance Term Life Insurance gives you a pretty good clue of how it works simply by the name. You purchase term life insurance to cover someone or yourself for a “term” or period of time. You might choose to cover yourself for just a few years or for many years. Term Life Insurance policies tend to be cheaper (especially if you are young and in good health when you purchase them), and they may fill the bill of protecting you and a young family in the case that you may pass away during the term you are covered. Perhaps, you are a younger person and have a spouse and small children and a mortgage. If you would die you could leave your spouse in a terrible predicament.
If you were covered with a term life insurance policy during these years you could protect them. They could pay off the house and have adequate money to live and to help pay for the children’s education. You might be a young person with no family of your own but want to make sure that if you did pass away your parents wouldn’t be saddle with the cost of a funeral and paying your final expenses. What ever your reason you need to protect the ones you love. Term policies can be purchase for as few as 5 years and up to 30 years.
They can be affordable and can offer you peace of mind. Accidental Death Life Insurance is just that. If you are covered with this type of policy and you die in a accident you are covered. If you death is say from a car accident, hunting accident, work accident just about anything accidental your family would receive payment. These policies are often cheap and have very few exemptions. But when you look at the statistics not many people die from accidents. Some people mistakenly think of these as a whole life policy and think they are covered for heart attacks, cancer, illnesses and they are not. Term life insurance is the better value. Most policies will cover accidents as well as illnesses and other reasons that may end your life.
Lastly, I will talk about “Whole Life” policies. These policies can be purchased for anyone at any age. And they are typically offered to parent of young children and babies. When the child is small and living with the parents the policies are cheap and provide very little coverage. Usually, just enough to cover a funeral and a burial. When the child turns 21 they can be converted into a policy that will follow them throughout life. The premiums will go up as the person ages (and becomes more of risk) and usually can be carried throughout old age. They can become expensive and some may stop covering senior citizens at certain ages.
At the end of the day, its your choice what type of coverage you decide to take. Everyone needs to have a life insurance policy in place no matter your age. Do you want to leave your family will bills and debts when you pass away? Do you want your spouse or children or even you parents burdened with paying for you funeral? The answer is probably “NO”. Term life insurance is often a good option if you are undecided on what you want to do. Term Life insurance can fill the gap and protect your family in their time of need and give you peace of mind knowing you have taken the steps to cover them and yourself.