Many people have loved ones they want to cover for a limited period; however, they don't foresee the need to secure their survivors beyond that point. For example, you may have children you want to protect until they graduate from college, or an elderly parent who will depend on your income for the rest of his or her life. Term plans enable you to provide that security for your beneficiaries without any obligation to continue paying premiums after your policy's expiration date.
Life Insurance Pros and Cons
Although some insurers portray term life insurance as bare-bones coverage, a streamlined policy may be all you require at this stage. Healthy young adults in their 20s who are just starting their families and hoping to purchase a home may have very little to spend on life insurance after they've met all of their other financial responsibilities. Term life insurance can put substantial death benefits for your spouse, children or other survivors within your reach.
Term life insurance may not work to your advantage if you decide you want to continue coverage after your termination date, or if you decide you need protection as an older adult. Because senior citizens generally pay higher life insurance rates, you may find that you can no longer afford the premiums for term policies after you're retired. Some insurers may require you to pass a medical examination to re-evaluate your insurability.
If you've developed a serious health condition, providers may no longer consider you insurable. At that point, you may not be able to secure death benefits for your family or cover your funeral and burial expenses. When you're interviewing agents and investigating different policies, make sure you clarify the insurer's requirements for renewal after your plan ends.
Unlike permanent plans, which may guarantee death benefits for your entire life, term policies build no cash value and only pay off if you die before the conclusion of your contract. For some people, paying for a product that offers no return unless they die seems like a gamble. However, the security of protecting the people who are closest to you has an immeasurable value when you consider how your death will affect your loved ones financially. Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today
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