Term Life Insurance Features and Benefits

What are the features of term life insurance? Why do so many people invest in it? There are many benefits that come with investing in term life insurance like:

You choose the amount of time you want coverage

Term life insurance is typically the more affordable option when it comes to life insurance policies. One of the main benefits of term life insurance is that you can buy a policy for the amount of time you need, whether that’s 10, 15, 20, 25 or 30 years. When it comes to determining how much time you need, that depends on your dependents immediate and future financial needs, how many people depend on your financial support and to what degree, and how much you can afford.

It's an affordable option

Term life insurance is typically more affordable than whole or permanent life insurance policies. How much you spend on term life insurance depends on many factors including how long the term is, how much coverage you need, your age, gender, health, and lifestyle. Term life insurance policies also come with guaranteed level premiums, so you know what you will pay each month for the term of your policy.

It’s an option if you have a pre-existing condition

Getting insurance coverage can be challenging if you have a pre-existing condition. Insurance Best Prices partners with life insurance companies who approve term life insurance for individuals with pre-existing conditions like cancer, diabetes, high cholesterol, high blood pressure, and other health conditions. Comparing rates will help you secure the most affordable premium.

It’s tax-free

If you have money you want to give to your loved ones when you pass, a term life insurance policy can be a good option. When you pass, the benefit is paid in the full amount, and is tax-free. That means your beneficiaries won’t be expected to pay taxes on the sum like is the case with inheritances. However, if the life insurance benefit is paid in installments, your beneficiaries might have to pay taxes on interest.

There are flexible payment options

The policyholder can decide if they want to make monthly, quarterly, semi-annual, or annual premium payments towards their policy. However, you can typically get a discount if you pay annually.

Your premiums are fixed

It’s easier to plan for your future and manage your finances if you have a fixed premium payment. As long as your policy remains active during your term life insurance period, your monthly premiums won’t change.

Is Term Life Insurance for Me?

Term life insurance has many beneficial features. It is affordable and flexible. It can be customized to make sense for your financial goals. You could benefit from a life insurance policy if you are raising children, have student loans you contribute to, have short-term debt, have a mortgage.