The main characteristic of term life insurance is that it refers to a policy which is valid for a limited period of time; the shortest can last only a year, but it can also go on for decades. For many people, this type of insurance is the most affordable, but not in every case. For example, if you draw a term life insurance policy for five years and after that period wish to renew it, it is very likely you won’t receive the same deal; you premiums could be increased – or decreased – and so could your benefits. However, if you just need a certain type of insurance for a short time, or wish to raise a sum of money, this may be the best option for you.
In some situations, life insurance quotes for term life insurance are smaller than those for whole life insurance; yet there are many factors that a company takes into consideration, such as your age, your gender, your current health and medical history, and even your place of employment and the nature of your work. Nevertheless, at the end of your policy, if all your premiums have been paid on time and there are no debts to the company, you can receive the cash value of your policy. In the sad event that you die, the beneficiary appointed by you will receive the death benefit from your insurance. That being said, this type of insurance is sometimes the best for those who are interested in obtaining a substantial death benefit.
This means that term life insurance can be a good option for those who suffer from an incurable disease; you can either disclose your affliction and risk huge premium payments, or you can opt for a non-disclosure policy, in which case your premiums might become more expensive as well, because the company is taking a blind risk. Yet for your loved ones, the death benefit can be a much needed help in case you die; single parents always have trouble making end meet, because they either have to get a job – and therefore pay someone to take care of the children – or stay at home and gain very little.
Those who are interested in saving money for retirement, or for other expenses are better of with different types of insurance, such as the whole-life policy. Term life insurance is best for income replacement – in case you get fired and need some money to fall back on for a while – or to support your family for a while in case you die. Thus, the sum could go towards consumer debts, mortgage debts, college or education expenses and even funeral expenses. We hope this information was useful in helping you decide what type of insurance would be best for you.