4 Facts about Term Life Insurance
Term life insurance is a policy that pays a benefit when the policyholder dies. The benefit goes to a beneficiary chosen by the policyholder upon purchase of the policy. In most cases, the beneficiary is someone who represents the policyholder’s family. Here are 4 facts about term life insurance.
1. Term life insurance has an expiration date. This type of life insurance isn’t permanent. The policy is good for a certain period of time.Once that period passes, the policy is no longer valid. If you outlive the term of the policy, then you’ll have to get a new policy.
2. Term life insurance is less expensive than other types of life insurance. Most people choose term life insurance because of the cost. Unlike some other forms of life insurance, term coverage doesn’t have an extra benefits. Permanent forms of life insurance offer benefits such as accumulation of cash value. That benefit causes permanent policies to cost slightly more than term life policies.
3. It’s easier to get life insurance when you’re healthy and young. The older you are, the more of a risk you are to an insurer. And the more risk the insurer takes on, the higher the policy. You’ll still be able to get coverage, just expect to pay slightly more than a younger person.
4. Children can get life insurance too. Life insurance isn’t just for adults. It’s possible for a parent to get a policy for a child or another family member. You might want to consider this if your child is stricken with a terminal illness.
If you want to learn more about term life insurance, speak with your insurer. Term life insurance may be the best type of policy for your needs.