15 Year Term Life Insurance…Is this the Best Option for You?
Life can be shorter than you expect it. Even royalty like kings and queens die at a young age. Look at Princess Diana. She’s proof that accidental and early deaths can happen, no matter who you are. There’s a possibility of leaving your loved ones and people you care deeply for when you least expect it. You do not know what will happen tomorrow. This is why it’s important that you prepare yourself for the worst and look for a minimum 15 year term life insurance.
Difference Between Term Life Insurance and Whole Life Insurance
Your death and the death of loved ones do not only cause grief and sorrow. They also cause financial troubles due to the high bills from funeral and burial expenses. Average funeral can cost as much as $10,000. It can even go higher. One’s passing away can also result to lost paychecks. These situations can be prevented from happening if you have life insurance.
Remember depending on your budget have many options. Term life insurance that can go low as 10 year term life insurance and high as 30 year term life insurance. These policies are available at your job as well. Some family members are protected using term with these kinds of plans.
When signing up for insurance, you have to know the difference between the whole life insurance and term life insurance. Whole life insurance does not expire before your death if you pay the premium on time. It also has a cash value that grows over the life of the plan. This means you can borrow the cash to pay medical bills or prescription drugs.
On the other hand, term life insurance temporary and will terminate at certain numbers of years, it’s basic insurance. You pay a premium and you are guaranteed a lump sum of money when you die while the policy is taking effect. Term policies are also sold for specific lengths. There’s 10 year term life insurance, 15 year term life insurance, 20 year term life insurance and 30 year term life insurance. The key to remember here is that once the term expires, you stop paying the premium and the policy no longer takes effect.
Why You Should Look into A Term Life Insurance
In life, you will find yourself in situations where you need to change your jobs. Therefore, there will be times when your company drops your benefits due to bankruptcy or out of business. You need an alternative plan from a private company like Humana that will cover everything. Have a Plan that will protect your spouse, your children, your home and have extra finances in case of emergencies.
A whole life insurance may not be suitable especially when you know there will be changes because it is more expensive. These are more appropriate for those who have stability and can pay the same premium each month through the years. Some people choose 30 year term life insurance over 10 year term because it’s longer. When you get married, have children and send your kids off to college, your finances change drastically. Therefore, investing in a 10 year term life insurance seems more risky than opting for the 30 year term life insurance.
Most brokers recommend to get the 30 year term life insurance because it lasts for that period and it still lets you have protection for a long time. Another thing you should know is you must approach a broker and not an captive agent. Brokers will give you options on insurance providers. Captive Agents will only refer you to the insurance provider that they work for. At least with brokers you have a wider selection and you can definitely choose from the many options in front of you.
15 Year Term Life Policy or 20 Year Term Life Policy?
When choosing a term life policy, consider what you need now and in the future. If you’re single today, you still have to check insurance that will work if you have a child. That’s because n the future, you will have a kid. If you only get a policy for yourself and the child comes along, then the current face value of the insurance changes. It grows and you do not require the high amount that you were paying before.
There are many reasons why people will go for the shorter policy than the longer one. This is because a shorter policy is cheaper in prices and usually matches your needs .
Understanding Convertible Term Life Insurance Better
A common mistake that most people make whenever they buy term life insurance is that they get policies that are regular term. FEW term policies are convertible. When the term ends, they have the option to convert to new terms or choose a whole life policy and they do not have go through a medical exam. They also do not have to answer health questions.
Having a convertible term life insurance policy also means that at any point before the policy ends, you can convert this to whatever you deem necessary.
A convertible term life insurance is necessary because when your health deteriorates at the start of your coverage, you have the option to change the term. If not, then you will struggle to qualify for a coverage. With convertible term life insurance, you can change into a permanent policy and there’s no need for medical exams.
Some may confuse this with renewable term life insurance. Renewable insurance means you can extend the policy once the term ends. The problem with this is that the rates are generally very costly whenever they are renewed. Worse, if you cannot cancel your policy at the end of your term, you are billed and you aren’t aware of it.