Why should I opt for low cost term life insurance?
Depending on your current status and financial situation, as well as your future financial objectives, low cost term life insurance can be your best choice, and sometimes - your only option. Buying permanent life insurance might be prohibitively expensive or you may run the risk of leaving your family insufficiently insured if you can only afford to buy a small amount of it.
When is Term Life Insurance Recommended?
Term life insurance has a number of advantages, the most significant of which being its low cost. Term insurance premium rates have plummeted in recent years due to the overall lower mortality rate, and you can easily qualify for low cost term insurance if you are young, have a normal weight and a healthy lifestyle.
Term life insurance is especially recommended if your income is limited. Bear in mind, however, that term premiums increase at each renewal and can significantly exceed the level premiums of whole life insurance when the insured gets older or if their health deteriorates.
Additionally, term insurance is the best alternative when your need for protection is temporary and when the policy is purchased to cover special needs that are bound to disappear in the future, such as bank loans, mortgages, credit cards, etc. If the insured person dies, the proceeds can be used by the beneficiary to pay off the insured's outstanding debts.
And last but not least, term insurance allows you to convert your policy to whole life insurance without providing any evidence of insurability. This alternative is better than the renewal of term life policy since the latter is likely to be much more expensive in the later years of the existing policy.
Furthermore, converting to whole life insurance guarantees that you will be insured for life and provides many other life benefits, such as the opportunity to borrow or invest the cash value.
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