Whether you die suddenly due to an accident or several decades later due to natural causes, term life insurance allows your family to get benefits after your pass away. However, there are many more reasons why you should consider this type of life insurance during your lifetime. Below we take a look at some of the top reasons and benefits that have come to our notice as we made our own term life insurance investments.
Helps Pay of Mortgages
Getting a term life insurance policy that is equivalent to the value of their house is what many people do. In the case that they pass away the proceeds of the policy will go towards paying the mortgage of their house. This ensures that loved ones can continue to stay in a house and will not be forced to leave once the main breadwinner dies.
Premiums are Lower that Whole life Policies
Under term life insurance policies the premiums that need to be paid are significantly lower especially when compared to whole life policies. The lower premiums mean that you do not have spend a lot to invest in term life policies, and they are ideal if you are in a job that does not pay much.
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Allows Children to Become Financially Independent
Several term life insurance policies can be bought and if you buy one at the birth of each of your children and make them the beneficiary you are setting up financial security for them. Upon your death each child will get a payout which they can use for college or living expenses.
Policies can be Modified to Fit Your Budget
When first purchasing term life insurance you might be young and have a job that does not pay much in terms of salary. Therefore it is advisable that you opt for a policy that has lower insurance payments, however as your salary increases over the years you can modify it. The ability to modify policies and opt for higher premium payments will ensure that your loved ones, including your children and spouse will get enough of money for living expenses in the event that you pass away.
Flexible Premium Payment Options
Premium payments associated with term life insurance policies can be made annually, monthly or quarterly giving you a lot of flexibility. Additionally annual payments of premium policies usually will provide you with discounts which are often as high as 10 percent or more.
Living Benefits Give You Access to Money
Often term life insurance policies come with a living benefit rider and in this case the person who purchased the policy can get a payout. These living benefits are handy if the policy holder has suffered a stroke during their lifetime and needs an extra bit of financial assistance to cover their bills. In this case an amount of the death benefit can be utilized by the policy holder. While the rest is kept in the policy, to ensure that family members get a payout when the policy holder passes away.
Several of the reasons to consider term life insurance, such as family members getting tax free money which they can use for settling mortgages, paying for college or meeting living expenses are widely know. In addition term life insurance is also being sold with riders that allow for living benefits and these are increasingly popular.