Affordable Life Insurance Protection for Your Family

Why Do So Many People Get Term Life Insurance Instead of Permanent?

When it comes to buying a life insurance policy there are two basic types of plans to choose from: Term and Permanent. 

If you have done any reading up about life insurance you may have heard that many people choose term insurance instead of permanent for protecting their family.

But why do so many people choose term life over permanent life insurance?

That’s a good question and one you should consider when choosing the right life insurance to meet your family’s needs.

There are several popular reasons people select a term life policy over permanent coverage.

 

Reasons to Get Term Insurance

 

  • Cost – Permanent insurance usually costs up to 5-10 times more for the same amount of coverage as term life.
  • Easy to Understand – Term life provides coverage for a set period of time and expires at the end of your policy term.
  • Amount of Insurance – Term insurance allows you to get a lot more life insurance protection for your budget.
  • Duration of Need – If you need life insurance to last for 30 years or less, then term life is the best option.
  • Want Insurance Not Savings – Term provides a death benefit, but permanent life provides a savings component and a death benefit. Many people would prefer to do their own investing separately from a life insurance policy.
  • Flexibility – You can choose a duration of insurance for a set period of time to meet your family’s specific insurance needs.

 

How Term Life Insurance Works

 

Since term life is temporary insurance it provides life insurance for the short-term, between 1 to 30 years. 

If the insured person dies during the policy term, the death benefit is paid out to the beneficiary of the policy. The proceeds from the life insurance plan are usually paid free from federal income tax.

The beneficiary or beneficiaries are chosen by the owner of the life insurance policy.

If the insured person is alive when the term life policy expires, there is no payout of any benefits, and the insurance coverage ends.

Term life is death benefit only life insurance, it does not build any cash value inside the policy, such as, permanent life insurance, which costs up to 5-10 times more for the same amount of life insurance compared to term life.

 

Why Term Life Insurance Is Popular

 

  • Cost – It Is Cheap. It allows you to buy the maximum amount of life insurance protection at the lowest cost.
  • Tax-Free Death Benefit – Proceeds paid from the death benefit of a term policy are free from federal income tax.
  • Living Benefits – Some term insurance policies include living benefits, which means you may access a portion of your policy death benefits while you are still alive.
  • Renewability – Term plans offer the option to renew your policy when your initial life insurance term ends.
  • Convertibility – Term policies offer the option to convert your temporary plan into a permanent life insurance policy.
  • Pay off a Mortgage
  • Provide Financial Independence – Purchasing a term life insurance policy each time a child is born and naming the child or the person who will be their guardian as the owner will allow you to give some financial security to all of your descendants, just in case you are not able to be there to help them yourself.
  • Pay for College Education 
  • Pay Off Credit Cards and Other Debts
  • Pay for Your Final Expenses

 

Cost of Term Life Insurance

 

You can find out how much coverage for term life insurance policies costs by requesting free term life insurance premium quotes over the internet. It only takes a minute.

All you have to do is visit a life insurance website, fill out the Quote Request Form, and you will instantly see the lowest prices for term life coverage on your screen.

 

Term Life Insurance Quotes

 

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Why Do So Many People Get Term Life Insurance Instead of Permanent?

 


Disclosure: Compensated Affiliate