Life insurance is a must for any person who wants to provide financial peace of mind to their families. But if you’re ready for this protection, should you choose a whole-life or term policy? Whole life policies are designed to provide a permanent benefit and carry cash value, so long as you keep up with premium payments. Term life plans, on the other hand, last only for a specific amount of time and offer a set death benefit—or an amount paid to your beneficiaries upon your passing. While this option is slightly more limited, there are many advantages to choosing term life, especially for younger consumers. Here are just a few reasons why.
3 Benefits of Term Life Insurance Policies
1. Lower Premiums
Since whole life plans last indefinitely and build cash value that can be borrowed from, they tend to require more expensive premiums. Term life policies, however, will expire at the end of the term—and that means lower monthly premiums. This lower cost is ideal for young families that have smaller budgets and bigger everyday expenses—including those associated with homeownership and raising children. And while the premium may be smaller, you can still have peace of mind that your loved ones will receive funds to pay for these things if you pass away unexpectedly.
These plans offer flexible terms that can help lower your premiums and allow you to design coverage that best fits your specific needs. For example, you can work with your insurance agent to raise or lower the death benefit, allowing you to pay less every month. You can also shorten or expand the length of the term to ensure you have coverage for a specific period of risk. New parents, for instance, will often choose a 20-year term to provide coverage until their children become adults and their homes are paid off.
3. Extension & Conversion Options
While term life policies expire, you don’t necessarily have to give up the coverage you enjoy. Many providers will allow policyholders to change their policies by adding more years to the term plan. Others may even allow you to convert the policy to whole life, allowing you to recoup on your investment as you grow older.
If you’re thinking about life insurance, Landis Barrow of USHEALTH Advisors is here to help you understand your options with confidence. As a trusted insurance agent of Hurst, TX, Barrow will introduce you to a variety of plan options that are designed to address your risks and coverage needs. Additionally, this advisor will maximize your protection while employing professional strategies to get you lower rates. To learn more about the life and health insurance products that this Dallas-Fort Worth agency offers, visit his website. For a personalized insurance quote, call (817) 501-9154.