Advantages / Disadvantages of Term Life Insurance
Posted in Life Insurance , Term Insurance , Whole Life Insurance
July 14th, 2009
One unpleasant fact about this modern life is that money – or the lack thereof, specifically – limits what we can do. The more money we have, the more options. There are those of us with very few options indeed, and those at the other end of the financial spectrum who have nothing but options. The vast majority of us fall somewhere in between. One thing that many of us want to have but that some of us can’t quite afford is life insurance. Life insurance gives us peace of mind knowing that our loved ones will be financially cared for when we pass away. If you’re the parent of two young children, for example, then you know how important life insurance is. What would happen to them if your income suddenly vanished? Or worse, if it vanished but your debts did not? We get life insurance in order to avoid that worst-case scenario. For those of us who can’t afford whole life insurance, there is another option available: term life insurance.
Term life insurance is life insurance bought to cover specific time periods of our lives. You can buy term life insurance to cover yourself for one year or 30. These selected time periods are what separate term life insurance from traditional whole life insurance, which is a lifelong commitment. Of the advantages to term life insurance, the first is going to be price. It’s perfect for those of us on a budget. Secondly, it can also be converted to whole life insurance should you choose to do so. You can also renew it when the time period you’ve chosen expires.
The disadvantages of having term life insurance as opposed to whole or permanent life insurance is that costs tend to get more and more expensive as time goes on. It will soon become a question as to whether it’s financially worthwhile, as opposed to permanent or whole life insurance.
To learn more about term life insurance and the advantages and disadvantages of term life insurance, be sure to consult with a financial advisor.
For more of the best insurance rates information, visit Go Insurance Rates often as rates updates occur frequently.
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