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Sep 02

The Pros and Cons of Term Life Insurance

Trying to find the right life insurance policy can be difficult. With so many options available, it can be hard to decide which one is best for you. One option you can choose is term life insurance. Term life insurance provides you with coverage for a certain period of time. Like any life insurance policy, it has its benefits and its disadvantages.

Many people purchase term policies because they are inexpensive compared to other types of life insurance policies. This lower price allows you to purchase a larger amount of insurance at an affordable rate. Term life insurance is also easy to purchase. There is not a lot of effort that goes into finding a policy that matches your needs. All you need to know is how much insurance you will need and how long you will need it.

In addition to its simplicity and low cost, term life insurance policies are great for people that only need life insurance for a certain period of time. For example, a younger, married person with children may opt to purchase a term life insurance to help cover the mortgage or replace lost income if they die during the coverage period.

Despite its advantages, there are some drawbacks to term life insurance. One disadvantage to term life insurance is that it expires. Once the contracted period ends, so does your coverage. Although some companies give the option to renew the policy at this time, you may be unable to. Certain health conditions may disqualify you from coverage or raise your premium. You may also be too old to renew the policy and need to take out life insurance, or be unable to afford the premiums anymore.

Another drawback to term life insurance is outliving the term of your policy. Although living a long and healthy life is a wonderful accomplishment, those who outlive their policy if they are unable to renew it are left with nothing. You will no longer have any life insurance coverage and you will not get any type of return on the amount of money you put into premiums throughout the years.

If you are still unsure if term life insurance is right for you, contact a local insurance agent. He or she will able to answer any questions or concerns you may have. He or she will also be able to provide you with alternatives if term life insurance does not fit your needs.

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