Term Life Insurance

 Term Life Insurance

Term life insurance refers to a life insurance plan which is covered with a set payment plan for a short period of time. The affordable rate that is offered for this temporary coverage will no longer be available after the term is finished. The client will be required to obtain additional coverage with less optimal payment plans after this period of coverage.

Term life insurance is one of the best valued life insurance plans available. It is extremely inexpensive and has amazing benefits for the beneficiary. The one thing that needs to be understood about this type of life insurance plan is that it is only valid for a short period of time. It can be set to last for a specific number of years or until the client turns a certain age.

Benefits of Term Life Insurance
Term life insurance is a very effective form of full life coverage and it offers an extensive amount of benefits. However, the benefits for a term life insurance plan will vary by plan. As there are many different types of term life insurance plans to choose from there will also be many different benefits that can be attained. The terms and conditions of the plan and possible additional benefits are all factored into the overall benefits of the plan.

The major benefit of a term life insurance plan would be that it is extremely affordable. When compared to the alternatives it is one of the most inexpensive plans to choose from. The rates of a term life insurance plan can save a client hundreds of dollars or more. There are many circumstances where temporary life insurance would be necessary. For instance, prior to employment in a job with life insurance benefits you may want a temporary plan to cover you.

Affordability and Simplicity of a Term Life Plan
Simply put, a term life insurance plan is optimal simply for the fact that it is extremely affordable. You can make the monthly payments for this plan while still having extra money each month which could be used for other insurance plans such as health insurance. Ultimately, you are open to much more financial freedom and beneficial spending by investing in an affordable plan such as the term life insurance plan.

Most life insurance plans will be very complicated for many people. The contract that is issued for the term coverage is less confusing though. The reason for this is that you are investing in life coverage and other associated benefits. There is no factoring in any fees for investing, provisions for loans, or contracts that go through the policy of the life coverage. There is not much freedom, if any, in a standard life insurance plan. With a term life insurance plan you will have a lot more control over the conditions of the plan and the amount of fluctuation it will have on your wallet.

No Cancellation Fees
A term life insurance plan does not hold any cash value. This may seem like a disadvantage but it is not. This actually means that there will be no excessive fees for discontinuing the insurance plan. The term life insurance plan is designed for you to be able to exit it whenever you feel like doing so.

The freedom of being able to cancel the plan without worrying about the amount of money that you may have lost is simply astounding. Additionally, you are not subject to any discontinuation fees which could convince you to continue the plan instead of canceling it even if you do not want to do so.

Grace Period
The grace period offered with term life insurance plans is very useful. Instead of the policy on your coverage lapsing as soon as a payment is missed it will give the client a grace period. This will be a thirty day period which begins on the date that the payment was missed. You can keep the plan active by paying the outstanding owed amount within this grace period. Even if the policy has been lapsed you can still get back on the plan if you pay the amount owed and show that you are a willing candidate for further coverage.

Is Term Life Insurance Really Worth It?
Many people turn away from term life insurance as they believe that it is a waste of money. If you are just getting coverage for six months then logically there is a good chance that nothing serious will occur to affect the beneficiary. However, a term life insurance plan can last many years and even in those temporary situations it can still be beneficial. Having life coverage at all times is very important as no one can determine exactly when they will actually need it.

Final Thoughts

A term life insurance plan can be beneficial to many people. It can be converted to a whole life insurance plan at a later date if necessary. It can also be discontinued if life coverage is attained elsewhere. Anyone looking for temporary coverage would get the most out of a term life plan. Even if you are looking for five year coverage or more you will get great results from this type of plan. It may not offer as many supplementary benefits as a whole life plan but it is more affordable and easy to understand than any other type of life insurance plan.