If you are looking for financial security for your family members, the chances are you’ve come across term life insurance coverage. After doing some research, it can be confusing to settle on a policy or where to start. With so many terms and definitions for various plans, we often hear people asking various questions about term insurance coverage. But the one we get most often is “which of the following best describes term life insurance?”
With many Americans unsure of what best describes term life insurance, we’ve compiled a list of answers that people have associated with term insurance.
So, which option is the best-suited definition for term life insurance? It’s number 5. Let’s take a closer look at how this form of life insurance works.
The most significant difference between term life insurance plans and other life insurance coverage options is that term insurance has a set end period. Unlike permanent life insurance plans, which fit more in line with option 1 above, you can purchase a term life insurance policy for a specific time, typically 10, 20 or 30 years.
Term life insurance is the most affordable life insurance product on the market because of its simplicity. There are no savings components attached to the plan and the temporary coverage periods attribute to it being more accessible and affordable for Americans.
Term life insurance is a highly flexible plan, fitting into any significant life event. When considering term life coverage, the best time to get a policy is right before a milestone in life.
These are all great examples of moments when you should consider getting insured with a term life insurance plan. Having temporary coverage during these times ensures your loved ones are covered from debts like mortgage costs, educational expenses and more if something happens to you.
There are cash value components with specific permanent life insurance plans. These additional features allow you to save a portion of your premium payment in a savings account. Unfortunately, these savings accounts only earn minimal interest, meaning you may be better off getting term life insurance and placing the difference you save on coverage and other income into stocks or mutual funds. This way, you’ll benefit from more affordable coverage and more interest accumulated on your savings at the same time.
We provide Americans with a wealth of affordable term life insurance options. Our team specializes in temporary coverage that can fit into any budget and work for any financial need. At Termforme.com, we offer three term life insurance products:
Each product offers up to $750,000 in reliable coverage amounts with fixed premiums for the life of the select term. Please complete our short free quote form now if you are ready to discover your term life insurance options!
Written by: Adam Bianco