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Windsor, VT 05089

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If you are interested in buying life insurance, one of the most common policies you will find available to you will be a term life policy. The other most common type of coverage is a whole life plan. However, there are plenty of differences between the two types of coverage, and at times, you will find that a term benefit is much more to your advantage. 

Here are five biggest benefits of term life insurance. 

1. Term life insurance is less expensive than whole life insurance. 

Term policies are comparatively inexpensive when compared to whole life plans, and to any policyholder, this is a huge plus. Therefore, if cost is keeping you from buying a plan, you will often find a term life policy much more cost friendly. It might be as simple as making a few changes to your monthly budget to be able to fit in your term life policy’s premium. 

2. Term life insurance allows flexible coverage. 

Term life policies offer you the flexibility of not having to make a long-term commitment to a life insurance policy. Because term life policies expire after a set number of years, enrollees can drop a plan at the end of its term, and enroll in new, separate benefits. 

Suppose, for example, that you have a $200,000 student loan when you go to college. At this time, you can take out a $200,000 term life policy to help your family cover the cost of the loan in case you die. You can set the policy term to end at the approximate time you pay off the loan. If you wish to enroll in new coverage at that time, you will have the opportunity to do so. 

3. Term life insurance gives you more savings opportunity. 

If you feel that you only need a term life policy, then you shouldn’t attempt to enroll in a whole life plan arbitrarily. Whole life plans are generally more expensive than term life plans. So, if you only enroll in a whole life plan because you think you need it, then you might be paying money that could be better spent elsewhere. 

4. Term life insurance isn't taxable. 

Life insurance payouts, including term life, are not subject to taxes. When you or a loved one pass on, the beneficiaries are not taxed on the money. 

5. Term life insurance is easy to apply for. 

Life insurers want to measure your risk of death, which will help them determine your policy premium and eligibility for given coverage. Many will require you to have a physical exam as part of your enrollment process. However, if you have a pre-existing health condition, then you might find this part of the enrollment process a challenge. All the same, many term life policies offer minimal exams (some don’t require them at all) which will weigh less of the severity of any existing condition. 

It's essential to weigh the pros and cons of term life insurance policies that you are considering. See how they match up with your needs.
Posted 1:24 PM

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