Skip to main content

What Is Term Life Insurance and What Are its Benefits?

 


Only 54% of people have life insurance policies. Many people decide they don't need life insurance because they have plenty of money, while others think it's too costly. 

Life insurance is a vital form of protection that most people should have. It provides a cash payout to a family when the insured person dies, and it can help a family in many ways. 

If you begin comparing insurance options, you might wonder, "What is term life insurance?" Term life insurance is one of the most common forms of life insurance, and it might be the right choice for you.

Read on for a guide that explains what it is and the benefits it provides.

What Is Term Life Insurance?

A life insurance policy provides a cash payout when the person named on the policy dies. However, it offers only one payout, which doesn't occur until death. 

There are several types of insurance policies you can choose from when you want to buy life insurance, including term life and whole life insurance. So what's the difference, you might wonder?

Term life insurance lasts for a set timeframe that you choose when you purchase the plan. For example, it might last for 20 years. So if you buy the policy when you're 30 years old, it ends when you turn 50. 

If you're still living when you reach this age, your policy won't provide a payout. 

A whole life insurance plan doesn't end, as it doesn't have a term. Instead, it lasts for as long as you live, and it guarantees a payout no matter when you die. 

What Benefits Does It Offer?

Term life insurance offers several benefits, including affordability. Buying a term life insurance plan costs less than other life insurance types. You can compare the costs by asking an agent for a quote for multiple types. 

Secondly, term life insurance offers protection when your family needs it the most.

When you're younger and raising children, your family would suffer more financially if you died. If you want to protect them from financial devastation, you can buy a term life plan. 

Additionally, you can add a child protection rider, which covers you if you lose a child. You can add other riders, too, if necessary. You can ask your agent about your options. 

Finally, you might be able to convert the plan when you're nearing its end. For example, if you decide that you'd like a life insurance policy that never ends, you can ask about converting it to a whole life insurance plan. 

Get a Policy for Protection

What is term life insurance? After reading this guide, you should have the answers you need. You might even decide that a term life insurance policy is the best choice for your family.

If so, you can compare life insurance policies and costs to find the right plan to purchase.

Did you enjoy reading this article? If so, check out others on our site.


Comments

Popular posts from this blog

Copycat Boston Pizza's Bandera Bread

Have you ever had a craving for something but then once you looked at it you realized, I can make that myself for next to nothing? That's how I felt last night I thought about ordering in some food but then realized I really don't want to spend any money. I really wanted pizza bread from Boston Pizza. So I recreated it and oh my goodness was it ever good. Try some of these great recipes too!  Pizza Bread Dough 1 cup warm water 1 tsp instant yeast 1 tsp sugar 2 cups flour  Seasoning 1 tbsp melted butter 1 tsp garlic powder 1 tsp onion salt 1 tsp parsley 1 tsp rosemary 1 tsp basil 1 tsp oregano 1/2 tsp sugar 1. Combine the water, yeast, and 1 tsp of sugar in the mixing bowl and let stand for 5 minutes. Add the flour and salt and mix until a ball of dough forms. Roll ball onto a floured counter top and knead for a couple minutes.  2. Put dough in an oiled bowl and let rise for 30 mins in a warm place with a clean cloth draped over top. While your doug

Affordable Ways To Make Your Home Look Luxurious

How do they do it? Professional designers seem to pull it off so effortlessly, but how will you make your home look more luxurious? You could just employ a professional or you can personally undertake the task of transforming your home into a place of luxury on a budget. In order to save money on your purchases, be creative and vigilant in your pursuit for the perfect style. Follow our budget-friendly ways for making your home a vision of luxury. Think it through, choose a style Luxury look isn’t enough to go on, so before you start shopping and wasting your money on furniture and decorations you might not even use in the end, first do some research. Go online and do some window shopping and find which style is more to your liking . An elegant Victorian style or something more modern and chic? Don’t get me wrong, you may want to mix and match, but before you commit by buying anything, consider what look you are going for. White is the color of elegance Choosing white as yo

DIY Table Revamp - Guest Post

Hi all! I'm Tiffany from This Motherhood is Brought to You by Xanax and I am so excited to be a part of the Guest Post Swap and to be Amanda's swap partner! I love love love her idea on how to make indoor snowballs with egg cartons. I am definitely going to have to try that with my kiddos since my smallest one has decided that it has to snow for Christmas. Poor baby doesn't know snow is hard to come by in Alabama :( For my guest post I wanted to share a little DIY with you guys that involves duct tape! A few months ago my daughter's little chair that goes with her table she sits at every day tore and she made it worse by pulling all of the stuffing out of the seat! What started out as a quick fix turned into a great idea. She loved her seat so much that she has now decided that her table has look cool too so being the smarty pants that she is, she tore her table!