In a world where nothing is certain and where change is constant, there is at least one thing that can be promised to you – and that is the assurance that when things get tough, a reliable insurance company has your back. Every person’s circumstance, perspective, and capabilities are unique, therefore there isn’t a one size fits all kind of insurance. There are different kinds for every group of people, and Term Life Insurance may just be the one for you.
Before you draw that conclusion that insurance isn’t just designed for your situation and interest, think again. Term Life Insurance may just be the most suitable and convenient insurance for you and your loved ones.
What is Term Life Insurance?
Term Life Insurance is the most affordable life insurance wherein you only pay within a specific period of time. An individual may choose to purchase term life insurance for one specific year. The individual chooses such year in the thoughts of possibly passing away in that period of time. At the demise of the insured individual, the beneficiary receives the benefits. When however, the individual does not lose his life at the end of the period, the insurance expires and you can choose to either forgo the coverage or resume for another span of time.
How is Term Life Insurance different from Life Insurance?
To most people, life insurance may appear singular and the same. There are however different kinds of life insurance. Term insurance differs from whole life insurance in a way that the former covers only a certain period of time while whole life covers the individual’s entire life. Whole life insurance may be paid or deducted from an employee’s salary regularly meanwhile term life insurance is paid in specific terms.
What are covered in this type of Insurance?
Term Life Insurance is claimed when the insured individual’s life is terminated. The insurance may cover the individual’s financial responsibilities such as funeral costs, mortgages, debts, or education expenses of dependents.
Which is better, whole life insurance or term life insurance?
The preference of one over the other largely depends on the situation and capacity of the individual. There is not one of these insurance that is better than the other. When purchasing a type of life insurance, one considers his health, age, safety, life expectancy, dependents, and financial situation. If you are faced with a chronic illness, at a fragile age, or in a life threatening career, then maybe term life insurance is best for you. For younger families, whole life insurance may be more practical.
Begin looking into your life and your loved one. What could be the best for them? Would your financial capacity allow you to purchase a term life insurance or a different one? It is okay that even after asking yourself these questions, you are still left undecided. It is best that you talk to your loved ones about it and consult an insurance agent.