Buying a term life insurance policy is an affordable way for you to make sure that your family is well taken care of in case something untoward happens to you and they are forced to fend for themselves. Term life insurance is an insurance policy where you choose a term length, unlike whole life policies where you are covered for as long as you live. It may seem to some that because of the limited coverage time that term insurance is inferior to whole life insurance, but the truth is that they actually have benefits that make them a very viable investment.
They are cheaper
Whole, sometimes also called permanent life insurance, combines life insurance products like medical coverage and burial needs along with investment options; and this additional cost makes the prices of whole life insurance a bit too expensive for most regular folks. Term life insurance on the other hand will only depend on the term length that you want, so you can get a really good deal on coverage if you choose a short-term policy.
You choose where to invest YOUR money
The truth about whole life insurance policies is that they are usually invested by the insurance companies in low-risk ventures; even though your money is safe, you would not be able to make much money on them. If you have a bit of talent in making lucrative investments then you should just settle on a cheaper term life policy and invest the money that you saved up into other, more lucrative investments.
They can cover your family’s short-term financial needs
In the event that you pass on during the term of your life insurance, you can be sure that your family will be well taken care of in terms of financial support. For instance, you can purchase term life insurance that will last up until your children graduate from college; so in case you unexpectedly leave this world, your children’s continued education is guaranteed. The same thing can be done to protect your home’s mortgage, you only need to buy a policy that is the same length as that of your home loan.
Even though term life insurance does not cost as much as whole life insurance, it is not inferior to it in any way. With term life insurance you can breathe easily knowing that your family will be just fine even if the unfortunate happens and you unexpectedly leave them behind.