Many people are under the mistaken impression that life insurance is too expensive. While some kinds of life insurance can be more expensive than others, there are many different kinds of policies out there such that you can find one to meet your needs. One of the most popular kinds of life insurance is known as term life.
Basics of Term Life
Term life insurance can often be converted to a more permanent product down the road if you need it. This gives you the chance to align your insurance policies with your needs at the time, so that if you determine you need more permanent protection, you can roll it into a permanent product later. You can choose a term coverage period typically between ten and thirty years, so that you can determine what is most appropriate for your individual needs.
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Term life insurance policies are much cheaper than whole life or universal life. Some insurance agents, however, focus on these other products. Sometimes this focus is well-meaning, because the agent wants you to have lifelong protection. Other times, the agent might be trying to achieve a particular number of sales with a certain carrier or earn a higher commission on these products by pitching them to you instead of term life. What should matter are you needs and not the desire of the agent. That’s why it pays to work with a company who is committed to finding you a quality life insurance policy that is also affordable. Your best interests should be your primary concern, so do some research to compare costs and whether you really need all those other elements offered by more complicated policies.
Term Life, Whole Life, or Universal Life?
Whole life insurance can be five times more expensive than term, but term life often covers your basic needs. Even in the realm of more permanent life insurance solutions, you can look into products that do not carry cash value accumulation. These are often more affordable while still giving you the basic benefits of a long-term life insurance policy. These are known as guaranteed universal life (GUL) and permanent term insurance.
Also Read: How to Buy the Right Life Insurance Policy
When you purchase a term life insurance product, you do so with the primary concern likely being that you could die tomorrow. Many people do not go out looking for a life insurance policy under the premise that getting one will provided them a long-term investment opportunity. While these bells and whistles might be nice, they are not necessary for many people who have basic life insurance needs. It doesn’t make sense to buy life insurance with an investment when you think about the cost per the coverage amount.
This is why many people find term life a suitable product for their needs. You get the peace of mind that you have a policy in place to help you during your working years (or the time you’re raising children or paying a mortgage), but you are not paying for any of the extra policy add-ons that you do not really need or want.
