This type of policy combines life insurance with a savings account. It is an insurance policy that you could choose to cover you for 10, 15, 20, and 30 years depending on how many years you believe you will need the coverage. This coverage is a less expensive coverage when compared to whole life insurance.
Term life insurance is also a much simpler form of insurance as with the premiums that you pay annually, in the event that something tragic takes your life, your beneficiaries or family will be given a lump sum of money by which they can use to pay for the cost of living.
If you are able to live through your coverage, which is the amount of time that you are ensured, you will have to get a new insurance policy, which will be for a different coverage. This is where you may need to pay more because you have gotten older, which most insurance companies charge more to cover.
Term life insurance provides temporary coverage for a period of time. Among the different benefits that come with this are:
- Term life insurance is cheaper than life insurance. You may choose to pay monthly or annually depending on which is more suitable to your financial situation.
- Term life insurance offers a more substantial death benefit in relation to the premium.
- Term life insurance also gives the benefit of being able to start with a term life insurance policy and then eventually convert that term life policy into a whole life policy.
- Term life offers good protection to coverage that is needed for very specific circumstances such as business owners who took out a business loan and needs to have the insurance coverage as he or she is still paying that loan.
- Term life policy allows mortgage protection that protects you and your family as you are paying off your mortgage.
When you have chosen which one to get, take some time to visit www.docoop.com!