You may wonder if you should get term life insurance. Perhaps you don’t have any dependents. Or maybe it is that you already have a whole life insurance policy or a group life insurance plan from your office. Here are some reasons why you ought to consider thinking about getting term life insurance:
Flexibility
You can buy a term life insurance policy just for the amount – and time – of coverage that you need. For example, if you are considering switching careers, and you just want to have a term life policy to cover you in between group life insurance policies, you can get a short-term life insurance policy for as little as one year. On the other hand, if you want to lock in a term life insurance policy for many years, you could get a 20-year life insurance policy, 25-year life insurance policy, and in some cases, even a 30-year life insurance policy.
Cost as compared to whole life
You may be able to find a much more competitively priced term life insurance policy than you would a whole life insurance policy. That is because term life, because it is for a set time period and contains no investment component, is generally less expensive than whole life – especially if it is purchased when the person is young and in great health.
Amount of coverage
Not only can term life be less expensive than whole life, but it may be able to offer you more coverage than whole life would, depending upon the policy and the company. That is something to think about when it comes to potentially protecting your family.
Coverage is not dependent upon a job
Group life insurance may cost you less out of pocket,especially if your employer picks up the tab, than term life insurance. However, what happens if you lose your job – a reality in today’s economy? You will then have to deal with either paying for the premiums yourself, or scrambling for insurance coverage elsewhere. These days, sticking with only your employer-provided life insurance policy could be a costly mistake. Term life insurance coverage can protect you, no matter where you work.
Potential peace of mind
With term life insurance, once you get a policy, it’s one less thing to worry about. Your beneficiary may be protected if something were to happen to you. And that sort of protection can be priceless.