When Do You Recommend Someone Go With Term Life Insurance?

When do you recommend someone go with term life insurance? Term life insurance policies are a good option for people who already have some sort of savings plan for retirement. Depending upon what your individual...

Depending upon what your individual needs are, there are quite a few options to choose from when purchasing life insurance. One type of life insurance that is very popular is term life insurance. In order to decide if term life insurance is right for you, you need to consider the reasons you want life insurance.

If you are looking for a simple policy that will cover your final expenses and leave some money behind to help take care of your family, a term policy might be right for you. Term life insurance policies provide coverage over a certain length of time and pay a specific amount of money upon your death. The terms, or, number of years your policy is in effect for, could be anywhere from one year to thirty years, depending on your needs. You can also choose the amount of coverage that you need. A small policy of 10,000 dollars would be enough to cover final expenses but if you are looking to provide for your family, you can purchase a much more valuable policy. Usually term life insurance premiums are lower than other types of life insurance premiums so they are the most economical choice for life insurance.

Joe Sostarich, a 26-year veteran of life insurance sales and management says, "I recommend term life insurance to people who are taking out a mortgage. The term of the policy can coincide with the number of years on the mortgage. If an insured dies before the mortgage is paid then the policy can be used to pay off the home. This type of insurance protects the family home and saves undue stress in the event of an insured's death. When family members are dealing with the loss of a loved one they don't need the additional worry of possibly losing their home." Joe recommends level term life insurance policies because, "Level term policies have low premiums that never change during the life of the policy."

Term life insurance policies are a good option for people who already have some sort of savings plan for retirement. Whole life insurance policies include a savings plan and are more costly. If you already have a retirement fund or pension plan then a whole life policy is redundant. Unless you are looking for an additional security blanket to add to your existing funds or pensions, a term policy will give you all the protection you need.

Some term insurance policies may have premiums that increase as the term progresses. The best time to purchase term insurance is when you are younger. The younger and healthier you are when you purchase your insurance, the cheaper your premiums will be. However, you might find your term running out just when you are in the time of your life that people begin to have health problems. Most insurance companies require a thorough history of your health and some routine blood tests before you can be covered. Some things that insurance companies are looking for are high blood pressure and high cholesterol. If you have any issues with your health, you may have to pay a higher premium.

Some term life insurance policies are convertible to whole life at the end of their terms. If you are not sure what kind of insurance you really need, it might be a safe plan to start with term life for a short term and consider converting it to whole life later.

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