Affordable Life Insurance
It is important when buying any type of insurance, be it life, health, car or home that you understand that differences between the different types of insurance on offer. When buying life insurance there are essentially two core types, Term and Permanent. Here we are going to discuss 5 reasons to select Term over Permanent Life Insurance.
1. Cost of Life Insurance
A term life insurance policy runs for a specified period of time. This gives it, its name. It is valid for a specified period of time. With Permanent life insurance the policy remains in force for as long as you pay your premiums and remans active until the day you die. Due to this, the premiums for Permanent Life Insurance can cost as much as ten times more than for Term Life Insurance.
2. Term of coverage
For many people, life insurance is required to cover a debt, be it a mortgage, a business loan or some other form of debt. The term can be anything from 5 to 30 years and can be tailored to suit individual requirements. It is this flexibility that makes it attractive to many people who are looking to take out affordable life insurance.
3. Quote comparisons available online
In order to investigate how much the life insurance required will cost, comparison quotes are available online. It is recommended to obtain at least three quotes to ensure that you get the best possible deal. You can compare the cost to that for permanent life insurance as well.
4. Easier to understand policies
Term life insurance policies remain in effect for a specified period of time (the term) and whilst you pay the policy. With Permanent policies there is often an investment element associated with the policy, making the policy document itself a far more complex item.
5. Regret the decision
If you have taken out a term life insurance policy and regret the decision you have made some years down the line, most companies will offer the option to switch to a permanent plan at a later point. When you take out the term policy make sure converting is an option before agreeing to the policy and check the fine print to see if there is a time limit for when this option must be taken up. Check the type of policy that will be available to you if you decide to covert to ensure that all your options are covered.
When you take out life insurance, ensure you take out the policy that is most suited to your needs and within your financial budget. The most important thing to remember is to keep paying the premiums each month to ensure the policy remains in force.