Advantage And Disadvantage Of Term Life Insurance Policy

29.03.22 01:05 PM Comment(s)
life insurance spring tx

Term life insurance is like renting a home for a period of time to provide shelter to your family. When the rent agreement comes to end, either you can extend it, cancel it or renew it. Likewise, term life insurance provides financial security to your loved ones for a set amount of time and when a policyholder does not die within the timeframe; either he or she can extend it, cancel it or convert it to permanent life insurance.

Unfortunately permanent life insurance is costly than your term life insurance providing almost the same coverage. Therefore term life insurance is one of the popular life insurance policies in Spring Texas. Know more!

What is Term Life Insurance Plan?

Term life insurance coverage is an affordable option where you can build wealth up to $1 million in a specific time period. Apart from this, this temporary life insurance coverage in Texas has flexible payment options, customizable such as convertible and end-of-term renewal option and return of term insurance premiums. Term life insurance policy covers two aspects;

  • Duration: Term life insurance is valid for fixed period such 5, 10, 20 or 30 years.

  • Death Benefits: Term life insurance provides only death benefits that mean you can only get death coverage after a policyholder dies within the duration.

You might need to undergo medical examination if a insurance company find your age more, health issue or if you are asking for high death coverage. Contact spring best insurance agents in Texas to know more!

Benefits of Term Life Insurance Policy
If you’re shopping around for life insurance, you may have heard that term life insurance policies are the best way to go if you’re looking to get the most bangs for your buck. But if that’s true, what exactly does it mean to purchase a term life insurance policy? 
What are some of the most common advantages and disadvantages when considering buying or not? Let’s break it down below..

Affordable Cost- When you have a health condition, it is common to end up paying more for your life insurance. Term life insurance policies are designed with those who do not have any pre-existing conditions in mind. So if you don’t smoke or drink, get regular exercise, eat a healthy diet, manage stress properly and have no health issues at all, then term life insurance would work best for you as opposed to whole life insurance.

Convertible- Term life insurance is convertible that means if a policyholder survives the term duration, you can convert it later to permanent life insurance if you want.

Maximum Coverage- With lowest premiums, you can enjoy the similar benefits such as funeral expenses, home loans, and outstanding debts from your term life death coverage.

Return of Premiums- Term life insurance gives an option of return of premiums that outlines if a policyholder does not die within the term policy, he or she can claim for return of all paid premiums back through return of term life insurance premium plan.

Cons of Term Life Insurance

While term life insurance is affordable, there are some disadvantages to consider. The biggest one is its restrictions: you can’t just stop paying your premiums and receive coverage for life. Most term policies end after a specified period, usually 10, 20 or 30 years (the length depends on your age when you purchase it). Once it ends, your coverage stops automatically. If you’re relying on that coverage to pay off loans or support a family member in need, term life may not be right for you.

No Cash Value- Unlike permanent life insurance that offers cash value to save extra money for your retirement, temporary expenses, term life insurance does not offers cash value. You will only get death coverage here!

Premiums Increases as you Renew- At the end of term life insurance, if you wish to extend or renew your policy, your premiums might not be the same because it get increase with your age, time and health issues.

Confused whether term life insurance is right or wrong for you? Talk to Texas reliable life insurance agency in Spring to clear your doubts! We are available online so you can directly request a quote!


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