Term life insurance is usually looked upon as a stop gap until a more permanent whole-life policy can be purchased. Even though this is sometimes the case, there are three distinctive situations where term life insurance is the best choice. If you are a recent college graduate, the sole provider for a young family, or if you are looking for the most coverage possible for the lowest price, it may be right for you.
One of the main benefits of term life insurance for a recent college graduate is the ability to cover school loans in case of the unexpected. Term life coverage taken out for this purpose will protect your cosigner from the liability of the loans in the case that you are unable to repay them due to a serious injury or in the event of your untimely death.
Established family bread winners on the other hand often look to short term life insurance as a way to protect large assets, such as their homes and vehicles. Term life insurance will provide an affordable way to secure funding that can cover mortgages and car payments to relieve financial hardship on the family. Term life insurance can also provide a back-up for a child’s college fund or continued medical expenses. In any case, single provider households often have a term life insurance policy to ensure that there are no financial problems to deal with if the unexpected occurs.
Meanwhile, others may simply be looking for the maximum coverage available at the lowest possible cost. If you fall into this category, term life insurance is your best bet. Whole life policies come with substantially larger premiums for essentially the same coverage over the term of a short term insurance policy. A term life policy doesn’t accrue any cash value, so the portion of the premium that would go toward that in a whole life policy is eliminated, leaving only the death benefit payment. The younger you are when you purchase a term life policy, the lower the premiums will be. So, if you are looking to get a large death benefit to cover a large debt that you don’t want to leave your loved ones with, this is the best choice.
While these three types of people can benefit from both whole and term life insurance, the price point of term life insurance makes it far more accessible.
For more information about Roselle life insurance, give Prime Insurance Agency a call at 630-442-0282.