Term Insurance Needs
Should You Buy Term Life?
Do you really need term insurance? There are other options, so, is term
life insurance for you?
Some people are convinced there are no other
Ever consider why this type of life insurance is so favored?
Let us take a look at some of the most popular term policies and see
whether or not they would fit your unique situation.
Save Up To 70% In Premium Costs - Compare Quality Life Insurance Quotes From Quality Carriers.
Why Buy Term Insurance?
- 5 Year Term
Why would one buy a 5 year term policy?
If you have a short term need for life insurance this policy may be
exactly what you are seeking. You have some outstanding debt that a
close friend or relative helped you get by signing on the dotted line
This person had guaranteed repayment of this loan. You don't
want to die and leave your friend holding the bag. The thoughtful thing
to do would be to buy a life insurance policy to pay off the debt in
case you should die before paying it off yourself.
The 5 year term
insurance policy may be ideal for this. This policy is very inexpensive,
it has a level death benefit as well as a level premium.
- 10 Year Term
Sometimes people buy this policy because of its low cost even
though this is not exactly what they feel they need. This is a short
term fix for a need that may be long term.
A family with young children
may need a 20 year or a 25 year term policy to protect the family
through to the end of the college years but because of cost they use the
10 year term policy until they can afford the more costly policies.
In some cases, on the other hand, the 10 year policy fits. Your
only child is age 15 and you want to be certain s/he graduates college
even if you are not here. The 10 year term policy may be ideal.
- 15 Year Term
You youngest child is age 10. You will feel more relaxed if you own a 15 year term policy
which would provide sufficient income to take care of the family until
the last child graduates. This policy is also quite inexpensive.
Premiums and face amount are level for the duration.
- 20 Year Term
Perhaps the most popular term insurance policy is the 20 year
term life insurance policy. People tend to buy this policy when planning
to get married or is they are recently married.
When a child is born
that is a good time to buy a 20 year term policy.
If you own a business you may want to use this type of policy for key
employee life insurance. You could use it also to fund a buy sell
agreement for a partnership or corporation.
- 25 Or 30 Year Term
One would purchase any of these policy instead on any of the
above if you anticipate a need for life insurance for a longer period of
time. Think about it, we normally anticipate a need for a newlywed
couple to be for a 20 year duration.
This couple may not want to have a
child until after 5 years. You may therefore need a 25 or 30 year policy
to protect that child through age 25. What of other additions to the
family later on and what if you cant qualify for the life insurance you
need when you get there.
You see if you buy a 25 or 30 year term policy from the outset
then all is taken care of. It is important to note that the purchase of
term insurance from the better life insurance companies allows you the
opportunity to convert to permanent life insurance at a later date.
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