Term life insurance provides coverage for a set period, usually from five to thirty years. Once it expires, you can either renew it, convert the policy, or terminate it. It is offered at a restricted time and only provides death benefits. Yet, it is the least costly life insurance.
The term life insurance is also a good coverage for the following:
- The years of mortgage
- Specific debts that would be passed down
- The funds for tuition and living expenses until the children graduate from college.
Factors That Affect Insurance Rates
The length of the policy depends on the situation or debt you want to cover. The lengths are usually available in 5 up to 30 years. Aside from life insurance amount and length, your policy value depends on:
- Height and weight
- Current and past health
- Family health history
- Nicotine and marijuana
- Substance abuse driving record
- Criminal history credit
- Hobbies in extreme sports like skydiving.
Pros and Cons
Term life insurance is a good investment if you don't want your loved ones to be left paying debts. So what are the benefits of purchasing the policy? Here are some advantages of term life insurance:
- Premiums are lower – if you are younger and healthier, the premiums are more likely lower.
- It's flexible- you can choose how long you want to be covered.
- Convertible – This if you decide to extend your policy. You could convert it to permanent life insurance coverage.
Term life insurance does not have any cash value, unlike permanent life insurance. It does not have an investment component. If you want a policy for a fixed period with built-in savings, then the ROP life insurance is the option.
The term life insurance policy is the simplest form of life insurance. It will serve as a safety net that will provide funds for paying debts once you pass away. It can pay for your mortgage. It can aid your kid's college tuition and other responsibilities that will be left behind.
At Honest Insurance Services LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (215) 354-1600. Get your free quote today by CLICKING HERE.