Why You Should Buy Term Life Insurance

When you buy term life insurance, you're purchasing protection for a specified period of time. There are definitely advantages to buying life insurance for a term, as policies are designed for all types of people with very diverse needs. An online search can turn up numerous providers, and also allow you to compare their rates so that you'll know the coverage fits your budget.

The Pros of Term Life Insurance

Who knows how much coverage each person needs, and for how long. When buying life insurance, you may want a specified amount for only a 10-year period. If so, the clear choice would be to buy term life insurance. Additionally, this kind of policy has low premiums, since the benefits are only for a set period. You can purchase a lot of coverage for a low price. Some companies also offer term policies that don't require a medical exam or history, since the benefit period is often shorter than the average time it takes to contract a serious disease or have a life-threatening accident.

Who Should Buy Term Life Insurance?

Term life insurance helps a lot of people. If you're on a limited budget and committed to buying life insurance, a term policy offers the low premiums you need. Maybe you have young children, and want to make sure they're full provided for during childhood. Later, when they are adults and financially secure, you may not need to renew the policy. For someone buying life insurance who isn't completely satisfied with the benefit amount of their whole or guaranteed life insurance policy, the price of a term policy makes it an attractive supplement.

Term vs. Whole

The advantages when you buy term life insurance instead of a whole life insurance policy begin with cost. Because a whole life policy does in fact provide coverage for the life of the insured, the premiums are higher. If you have a term policy and choose to continue buying life insurance by renewing it, you will likely pay more in the long run that you would by purchasing a whole life policy. But that's a more unusual case, since most people who buy term life insurance have a specific period they're concerned about, or another reason for choosing this type of policy. You could say that one con of term life insurance is outliving the policy, which means you would receive no benefit for your expense. Remember, you're purchasing for risk protection. And given the relatively low cost, there are certainly worse problems to have than living longer.

A Case Study

Through his employer, a 45-year-old middle manager has a guaranteed life insurance policy. With children ages 17 and 19, he's about to have to pay college tuition for two. With the staggering rise in higher education expenses, his wallet will be stretched pretty thin. If he gets killed in a terrible car accident from a careless driver, his savings account could be too limited to provide for his family, and his guaranteed policy might only cover a year of tuition and living expenses for his wife and kids. He could decide that the low premium to buy term life insurance makes fiscal sense-a calculated risk, given his current expenses, but a wise one considering the large amount of coverage he can buy.

Shop and Shop

What that man can do-as can you-is perform a thorough online search in minutes to find the best premium for the coverage he needs. Through NetQuote.com, you can see all the offers out there and make a responsible decision. The service is free and fast. It's a quick solution for protecting what you value most.