Your loved ones are, and should be, one of your most important priorities. If something were to happen to you, rendering you unable to take care of them, would you truly be comfortable with the very idea of such a scenario unfolding? Term insurance plans can help.
If matters were to take a sudden turn for the worst, your loved ones would have a financial backup to fall back on, and term insurance plans are one of the most affordable solutions for that purpose. Let’s look at their main advantages:
Customize them to your heart’s content
The good thing about term insurance plans is that they’re highly customizable. This allows you to negotiate the terms in accordance with your personal needs. You have the option of designing you own personal customized package.
Affordable prices
Did you know that term insurance plans are more affordable than complete life insurance packages? They are valid for a predetermined amount of time, hence their name. The prices are pretty transparent as well, and you can use a term insurance premium calculator to see what’s on the table pretty quickly. Basically, the insurance company is placing its bets on you outliving the duration of the deal, hoping to never have to pay you a dime.
Easy to understand
Since you’re not dealing with multiple variables, comparison shopping becomes a somewhat easier task. Basically, as long as you have a provider in mind, the only blanks to fill in are the length of term and the coverage amount. Simple, straight-to-the-point, and affordable; as long as you pay the insurance premium, you’re covered for the duration of the deal.
More suitable for younger families
Since they’re less expensive than whole life insurance, they provide better value for younger families. Considering the fact that younger families need to be very careful how they spend their hard earned money, this is a very useful thing to know. After all, there’s so much young families need to pay for (think: raising little kids, mortgage, loans, and saving for the kids’ college).
Flexibility
Term insurance plans offer flexibility quite unlike any other. Did you know you can set the term for as little as a single year? They also offer you the option of locking in the rates for as little as 5 years; this should be plenty to cover short-term expenses, in case you ever require this option. Usually, you’re free to choose from a number of predetermined terms such as 10, 15, 20, and even 25 years or more.
The Bottom Line
Term insurance plans are a great way to ensure the well-being of your loved ones even if you don’t have a lot of financial means at your disposal. The only downside is that they won’t last for the entire duration of your life; however, you have all the freedom in the world to custom-tailor them to your own needs, so the drawback is not severe by any means.
In the end, getting a term insurance plan will let you sleep at night comfortably, knowing that your loved ones will be receiving some form of financial support — even if higher powers claim their toll and you’re not around to look after them anymore.
Photo Credit: Steve Snodgrass
Hi from Indonesia.
Thanks for the article. I myself already bought a term-life insurance plan and I’m intrigued by the point highly customizable since it was not the case for me here in Indonesia. The insurance company I bought for only have fixed products which I could choose from. Your article gave me the idea to discuss with my agent.
I agree that term-life insurance is suitable for young families since the kind of insurance offers high protection in more affordable premium.
In the US, life insurance usually has very good tax benefits (i.e. no tax). Remember that the next time Buffet (Berkshire Life Insurance) calls for an increase in the death tax.
Good post. I learned something totally new and it’s always useful to read articles from competent writers.
What are the advantages term life plans have over the whole life plan?