When it comes to insurance plans, people generally suggest going for Whole Life Insurance Plans as these type of plans have cash value at the end.
And while looking at the Whole Life Insurance Plans, we almost forget about the Term Life Insurance.
Well, like Whole Life Insurance, the Term Life Insurance doesn’t have cash value at the end but still, it provides a lot of benefits which a Whole Life Insurance can’t.
So, with that being said, let’s understand why Term Life Insurance is a must have for everyone, irrespective of their working condition, age or anything.
There are several reasons why Term Life Insurance is a Good Option:
#1 Low Premium Amount
Before choosing any plan, the first thing we think about is its premiums.
Well, Term Life Insurance is known for very low premiums as compared to Whole Life Insurance.
However, there are several factors which affect the premium rates and one the main factor is age.
Suppose, if you buy any Term Life Insurance at very early age, like 20 or 22, the premium amount you get to pay is comparatively lower than buying the same insurance at the age of 40 or 45.
So, it is always advised to buy Term Life Insurance at an early age, maybe just after starting your career.
Term Life Insurance is considered as the most flexible life insurance and the reason is, you can choose how many years of coverage you want, you can also upgrade it later into other life insurance plans.
Here, coverage years starts basically from 10 years and goes up to 50-60 years (varies company to company).
Another major advantage of Term Life Insurance is if someday you find out that you need to upgrade your insurance plan into Whole Life Insurance Plan, you have an option to do that.
However, this feature also depends on company’s term and condition and is not applicable to every plan.
There is one additional feature as well if you someday want to suspend your Term Life Insurance Plan, you only need to stop paying the premiums.
After few months, your account would automatically get suspended. However, the company would try to get in contact with you and understand why you want to suspend.
#3 Doesn’t Require You To be Rich
As I have already discussed that the premium rates of this Term Life Insurance Plans are very low and hence it doesn’t require any huge investment.
Anyone, who can afford to pay few dollars each month, can buy Term Life Insurance.
There are several companies who offer $1M coverage by just spending few dollars a month.
#4 Best for Single Bread Earners
If you the only person who earns money in your family, then no any plan could be better than Term Life Insurance, as it requires very low amount but offers huge coverage.
Suppose, you met with an accident and died on the spot. What your family would do after you if you are the only earner of the family.
Well, here the Term Life Insurance comes in, the coverage amount secures the financial future of your family.
In short, the Term Life Insurance provides a secure financial future for the dependants in case of death of the single bread earner.
#5 Very Simple to Understand and No Hidden Conditions
The biggest fear for normal people is about the hidden criteria of such plans, which comes out as a spoiler when they go to claim coverage.
Well, in Term Life Insurance, you don’t have to worry about such incidents as you get to understand very less term and conditions.
Even though, it is advised to take a look or ask the agent about all its terms before buying any plan.
Now, as we all know that every good thing comes with some bad points as well and Term Life Insurance also has some disadvantages.
Some basic disadvantages of buying a Term Life Insurance are:
- No cash value. If you survive the coverage term, you will get nothing at the end. But in Whole Life Insurance, you will get a certain amount.
- Coverage is only for certain time period. Suppose, you have bought the plan for 20 years and if something happens with you even after one day of ending coverage term. The company won’t give you anything.
- Premium rates increase with age. So, if you are aged, you have to pay more premium amount for the same insurance.
At the End:
It doesn’t matter how much you earn, you can buy a Term Life Insurance to make your dependant’s future secure and happy.
That’s, why it is called a, must have insurance.
But before going for any insurance plan, it is always advised to go through every fine detail about it.
And also, do compare with other plans, so that you could understand what is good and what is not so good for you.
Buying Life Insurance is an easy job if taken care of few things.