Term Life Insurance
There are about 47 million Americans who don't have any form of life insurance. Most of them don't have insurance not by choice, but because they are not able to afford it. Either the employer they work for find it too expensive to provide his employees group insurance or they have simply lost their previous job and are yet to find a new life insurance policy. These facts have not been missed by insurance companies and they have introduced term life insurance to make this a business opportunity.
What is Term Life Insurance?
If you're looking for term life insurance quotes the first things that you'll notice are:
- The policy is time bound. What that means is you can get policies which will last anywhere between 1 year and 30 years, but after the end of the term they will expire, so you cannot get one to cover your whole life.
- The policies are much cheaper when compared to whole life insurance. However they wouldn't accumulate cash value nor will they ever qualify for dividends.
Who needs a Term Life Insurance Quote?
Term life insurance is bought by all kinds of people. It's great for those who are in between jobs. Suppose someone has left his earlier job and looking for a new one. This would need time. He had insurance provided by his previous office. Now that he has no job he is insurance-less. Before finding a new job that will again provide life insurance coverage for him, he can get himself a term life insurance just to cover against some extremely unfortunate accident.
Term life insurance is also bought by those whose wages are too low for them to consider buying a permanent life insurance. They use term life insurance as a cover and wait for things to look up in the future when they can shift to permanent life insurance.
Students studying in colleges also can choose term life insurance quotes. Many of them move to a different state in their pursuit of good grades. For them to have some sort of insurance in an almost unknown territory is advisable.
Other Reasons to Purchase Term Life Insurance
These days however, many people are also buying term life insurance instead of whole life insurance as a business opportunity. Whole life insurance always used the bait of cash value accumulation. However many are considering buying term life insurance at a lower rate and invest the difference on high-growth products like stocks and mutual funds where the returns are much higher than what you get as accumulated cash value on your whole life insurance.
The Disadvantages of Term Life Insurance
The drawback for term life insurance is that it is not easily renewable. While most companies don't allow you to renew a term life policy at all, the few which do provide the facility would charge significantly higher premiums for the renewal. One also has to go through medical tests once again and so if something had developed during the earlier term, the premium is going to rise further. What this suggests is that term life insurance works best for a single term. So when you are selecting the term be careful so that the term covers more time than you actually need.
Do You Need a Life Insurance Policy?
Are you wondering whether a life insurance policy is right for you? Though it may seem like life insurance isn't very important, there are a couple reasons to consider getting a life insurance policy today.
The Benefits of Life Insurance for Your FamilyIf you're single and have no dependents, then you may think that life insurance isn't necessary. But even a simple life insurance plan, such as a term life policy, can benefit other members in your family in the event of your death. A death benefit can help cover costs that no one likes to think about, but would be necessary, such as funeral and burial costs.
If you have a family, then life insurance is a more obvious choice. A life insurance policy can provide for them financially and help them take care of mortgage payments, bills, and more, at a time when they won't want to be burdened with those worries.
When to Get Life Insurance
Many companies offer life insurance to their employees, so a great time to start is when you start working. But usually the time to really consider a life insurance policy is when you start having a family. This may be when you have your first child, or it may be as soon as you get married, especially if your spouse is not working.Regardless of what kind of life insurance you're thinking about getting, now is a good time to start looking into the right policy for you.
There are ways to find the best term life insurance quote that's right for you. So start looking for the best deals today.
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