Term Life Insurance Articles
3 Advantages Term Life Insurance Has Over Permanent Life Insurance
2010-05-20
More confusing than life itself, is life insurance - or at least it seems that way at times. Obtaining life insurance is an investment worth exploring and the controversy is whether to purchase term insurance or permanent life. People begin the search and quickly become confused because the options with permanent life are wider and deeper than term life insurance, and seem more guaranteed. And they are - at first glance.
You begin by collecting online insurance quotes and quickly find the gap between the two. Term life insurance is defined by its death benefits because you profit if you die before the policy has matured. If you survive the distance of the policy, your family members get no money back. They do, however, get to keep you. What is the purpose of life insurance after all? In case of death, your family gets financial assistance from the insurance claims exactly as the policy is meant to work. Advantage Number One: Term life insurance works precisely as intended.
If you are planning to keep your life insurance policy for 25 years or more, permanent life might be the choice for you. If your intention is to maintain it for 10 years or less, choose term. Statistics show that most individuals let go of their policies inside the first 10 years, largely because they didn't do their homework. Since everybody's life is filled with uncertainties - things like whether you have children or not, how many and will they all attend college; or what if you have a home and you owe more in taxes when you die (or not) - the list is endless and makes the issue of permanent life insurance complicated. Advantage Number Two: Term life insurance is easy. You can purchase insurance that stops in 10 to 30 years, opt for an annual renewal term (premium increase each year) or choose to keep it at the same amount and fix the number of years.
Advantage Number Three reads loud and clear: Most term policies are convertible to permanent ones without evidence of good health. This is a real advantage. When you search for online insurance quotes, permanent life offers what is called a "savings account," which sounds good at first. As you dig deeper, however, you see that it requires all sorts of further choices and commitments. If you are a term life insurance policyholder, you can switch to permanent life with little fuss, before you make insurance claims on your current policy. It's almost as simple as changing your mind.
Remember: You can combine the two if necessary. The choices for life insurance, again, are: permanent or term. Complicated or simple? That's up to you.
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More confusing than life itself, is life insurance - or at least it seems that way at times. Obtaining life insurance is an investment worth exploring and the controversy is whether to purchase term insurance or permanent life. People begin the search and quickly become confused because the options with permanent life are wider and deeper than term life insurance, and seem more guaranteed. And they are - at first glance.
You begin by collecting online insurance quotes and quickly find the gap between the two. Term life insurance is defined by its death benefits because you profit if you die before the policy has matured. If you survive the distance of the policy, your family members get no money back. They do, however, get to keep you. What is the purpose of life insurance after all? In case of death, your family gets financial assistance from the insurance claims exactly as the policy is meant to work. Advantage Number One: Term life insurance works precisely as intended.
If you are planning to keep your life insurance policy for 25 years or more, permanent life might be the choice for you. If your intention is to maintain it for 10 years or less, choose term. Statistics show that most individuals let go of their policies inside the first 10 years, largely because they didn't do their homework. Since everybody's life is filled with uncertainties - things like whether you have children or not, how many and will they all attend college; or what if you have a home and you owe more in taxes when you die (or not) - the list is endless and makes the issue of permanent life insurance complicated. Advantage Number Two: Term life insurance is easy. You can purchase insurance that stops in 10 to 30 years, opt for an annual renewal term (premium increase each year) or choose to keep it at the same amount and fix the number of years.
Advantage Number Three reads loud and clear: Most term policies are convertible to permanent ones without evidence of good health. This is a real advantage. When you search for online insurance quotes, permanent life offers what is called a "savings account," which sounds good at first. As you dig deeper, however, you see that it requires all sorts of further choices and commitments. If you are a term life insurance policyholder, you can switch to permanent life with little fuss, before you make insurance claims on your current policy. It's almost as simple as changing your mind.
Remember: You can combine the two if necessary. The choices for life insurance, again, are: permanent or term. Complicated or simple? That's up to you.
