InsuranceSmartBook.com
|
Home > Life Insurance > The Pros and Cons of Term Life Insurance - Is it the Right Choice For You? The Pros and Cons of Term Life Insurance - Is it the Right Choice For You?Author: Ryan Richardson Anyone who is shopping for life insurance sees the obvious value in securing the financial future of their family in the event of their untimely passing. This article will briefly discuss the pros and cons of a term life policy to help you determine if it would be a good option for your situation.The cons: 1. There is an expiration date. The biggest drawback of a term life insurance policy is that it will expire at some point and when it does you will no longer have any coverage. 2. No cash value. It does not build up a cash value the way a whole life policy does so it cannot be used as an investment or a savings plan. The pros: 1. The most significant benefit to a term life insurance policy is the fact that it is far less expensive than any other type of life insurance. Whole life, universal, variable, and hybrids of the different types are all significantly more expensive than a term policy. 2. The cons may not be as bad as you think. The fact that it expires at some point is not necessarily a bad thing. It all depends on the goals that you have and what you want your policy to do for you. For example if your main reason for getting a life insurance policy is to make sure that your home loan is paid in full you would simply have to make sure that the term of your policy is long enough. If you still have 15 years left on your mortgage, make sure the term of your policy expires after 15 years. As long as the policy helps you make sure those financial goals are accomplished, the policy has served its purpose and is no longer needed. The fact that it does not build cash value is offset by the fact that it is so much less expensive. Many experts would recommend a term policy to most people because of the significant savings which could then be invested in any number of programs that would likely yield higher returns because the investment portion of a whole life policy has a number of fees and commissions associated with it making the yield of any investments lower. Term life insurance by far is the least expensive type. However, simply because it's the least expensive doesn't mean you should go with the first company you come across. A little time spent doing some comparison shopping could reveal an opportunity to save a substantial amount of money. You can find a company that offers the same type of coverage as another but for a much better price. For a list of highly rated life insurance companies in your area or to get more answers to any questions you might have Click Here! Other Recent Insurance Smart Book Articles:
Custom Search
|