Advantages of Term Life Insurance
- The main advantage of term life insurance is that it is the least expensive among life insurance plans.
- Term life insurance is easy to understand, there are no complex concepts involved in it. You only have to choose the face amount depending on your need and the length of payment, both of which, along with other personal information you will provide to the insurer, will equate to a specific premium.
- Term life insurance gives you the flexibility to change the face amount and length of coverage with every renewal, and you should do this based on your needs during that time.
- Term life insurance allows you to save or invest the extra money you get from lower premium payments into whatever form of investment you choose.
Disadvantages of Term Life Insurance
- Term insurance only provides coverage for a specific period, outside of that you are no longer covered and will need to renew or purchase a new policy.
- Premiums change with every renewal mostly because as one ages the premiums also get higher due to an increase in perceived risks from deteriorating health conditions.
- If you die without having renewed your policy, your beneficiaries do not get anything, therefore it is important to keep your policy updated.
How to find affordable term life insurance
The most important thing to keep in mind when looking for an affordable life insurance is to review all the available options first before purchasing a policy.
- The first thing to do is to evaluate your needs and your current financial standing so that you will have a fair idea of how much death benefit you need and what you can afford to pay.
- Next is to look for an insurance agent that, if possible, sells policies from various insurance companies. This way he or she can present more options for you to review and compare.
- Ask your agent to provide you with a table of premiums for different face amounts so that you can have a better idea of how much it will also cost you in the future.
- Look into the details of every option that is provided to you. Some policies may appear cheaper compared to others but they may also sacrifice some benefits. Make sure that you are comparing apples to apples.
- Try to live a healthy lifestyle. The healthier you are, the lower your premiums will be. That said, avoid smoking and engaging in other activities that are harmful to your health and could pose hazards on your life.
- Get a policy that has the longest coverage that you can afford to pay for so that you are able to keep the premiums level, but keep in mind that you will be paying the premium for a very long time so you should maintain your ability to do so, otherwise failure to meet your premium payments will lead you to forfeit the insurance plan and all the previous payments you have made.
Nowadays, shopping around for life insurance plans has become so much easier with the advent of the Internet. A lot of sites offer the free service of supplying you with a comparison of life insurance quotes from different insuring companies. This should give you a fair idea of what to expect when you finally meet with an agent, but this should not take the place of a proper consultation with an insurance agent. It is still important to ask all the questions that you want to be answered. After all, this is your family’s future you are talking about; you just cannot risk making a mistake on this one, especially when, grim as it may sound, you will already be dead once the insurance pays out.