Term Life Insurance Articles
How Term Life Insurance Quotes Can Lower Your Monthly Premiums
2010-06-21
Term life insurance quotes are a great tool for smart consumers who want to save money with lower monthly premiums. It is important to understand that term life insurance is designed to meet specific needs, which are different than those addressed by other life insurance products.
For example, a young couple with limited income and children may have considerable debt and less available funds to purchase life insurance. However, the loss of either of the income earners, or in some cases the sole income earner, would be devastating to the family emotionally and financially. An inexpensive term life insurance policy provides a cushion which reduces major expenses such as mortgages and college tuition, while also providing the money needed for surviving family members to develop a plan to meet short and long term needs without additional financial difficulty.
Term life insurance is not designed for use as a long term investment, and does not generally carry a "cash value." The longer an insurance carrier holds a life insurance policy, the greater the risk to the company and the greater the cost. Younger purchasers can expect less expensive policies and lower monthly premiums. As with all life insurance products, the health of the purchaser and other considerations affects pricing, but for younger customers term life insurance is usually less expensive because of reduced risk claims during the policy term.
Term life insurance is often a great way for families to lower monthly insurance premiums while providing the comfort of a reliable plan if an unexpected tragedy strikes. Policy options generally provide a lump sum payment to the beneficiaries named in the policy, in the event of the death of the named insured. When a term life insurance policy expires no benefit payment is made, but the insured can often purchase another term policy. A universal life insurance policy takes part of the premium and invests it for payment of benefits after the passage of the specific policy term or the insured's death. Since term insurance doesn't require the setting aside of these funds, benefits under the policy are less expensive and passed on to the customer, who benefits from lower monthly premiums.
Many families have made savings arrangements through the use of 401k's, Roth retirement accounts, or other savings plans. These plans are for long term savings goals. Term life insurance is another level of protection for a young family. If the reason for seeking term life insurance quotes is to get a policy that addresses the unexpected death of the purchaser and not to plan for long term savings or get a tax deferral benefit, term life insurance is a better option.
