There are specific issues of family finances that are difficult to address, as it is difficult to imagine that one day you will not be there anymore to take care of your family. Have you ever thought what would happen to the economic future of your spouse, children or dependents if you die? Did you have a conversation with your family about life insurance? If so, then you will be wondering what would be the best plan for you and your needs: short or long term? If you think that any one of the questions clicks your mind, here is some information that may be beneficial to you as you explore your options.
About life insurance: Term Insurance Plan
One of the most commonly contracted life insurance policies today is term life insurance. It is essential in its operation and one of the most practical types of life insurance. Term plan is best for those, who do not want to commit to long-term payments of life insurance.
Unlike permanent life insurance provides lifelong protection, as well as the ability to accumulate cash value that grows over time, a term life insurance policy offers protection for a specific number of years. This option is attractive for those who want to ensure coverage for specific financial responsibilities, such as a house mortgage or children’s education.
If you decide on a term life insurance policy, you have an amount and time set. This policy is created in a way that it provides coverage for a specific period. You can choose the term you want for your plan with the advantage that you can renew or extend it upon completion of the term.
Characteristics of life insurance: Term Insurance Plan
The duration of the fixed-term policy is defined from the beginning of the contract and can be five years, ten years or more. Usually, the maximum term is 30 years. There are also variants of this policy until a certain age, generally up to 65 years old or, at most, up to 75, coinciding with the retirement age. Once the term of the contract is over, the insurance can be renewed or allowed to expire, if the insured does not want to continue with it, without any commitment.
This insurance offers primary protection in the event of the death of the insured, and you can add some extras, such as cases of permanent and absolute disability or severe illness.
Benefits of life insurance: Term Insurance Plan
In comparison with other types of policies, those of term life have certain peculiarities that make them very attractive. What are the advantages of this type of insurance?
#1 Temporary: Being temporary insurance, it is perfect when you need to be protected against unforeseen circumstances, for example, if you are paying a mortgage or while the children are studying. Many people use it for a while until they can collect considerable savings and it is no longer necessary to have the policy to ensure the economic stability of those close to them.
#2 Economic: The price is also a significant advantage, since, being temporary insurance, it is cheaper, although it depends on the age of the insured and if it is gradually renewed, with which the premiums can go up.
#3 Flexibility: The premium is very flexible and can be paid at one time or in different payments: monthly, quarterly, half-yearly or annually.
#4 Adaptability: The economic coverage adapts perfectly to what each person needs, although it must be borne in mind that higher the amount insured, the premiums paid to the insurer will also be higher.
It is advisable to opt for renewable policies, since they are more practical, because you do not have to go through the medical examination that insurance chooses, but the coverage is automatically renewed.
If the term insurance policy draws your attention a lot, the best way to purchase one is by comparing all the available term life insurance plans online through a reliable source. Not only this online comparison will give you detailed information, but also save your time and offer you a term insurance plan at the lowest possible premium. To compare the top term insurance providers and choose the best, you may visit Coverfox.com, where you can compare different types of term life insurance plans under one roof, in just 2 minutes. This is how you can find the personalized policies most appropriate to your situation, always at the best price.