Many people are familiar with the benefits of having life insurance, a policy that can help financially protect your family when you are no longer around. Unfortunately, even those who understand the need for insurance often lack information about the type of insurance that is best for them.
Term life insurance offers many of the financial protections that a typical whole life insurance policy provides you. In fact, term life insurance is quite attractive to many people, offering them:
- Larger death benefits for less
- The option to convert to whole life later
- Simple insurance terms
For many people, term life insurance is a favorite option. If you are considering purchasing a policy, consider the following key factors that may affect the policy you need.
Purchase Term Life Insurance to Pay off a Loan
Although many people don’t like to talk about it, insurance offers families a means to pay their expenses after losing the income of the policyholder. Without life insurance, many families could possibly lose their homes and/or cars, making life harder for them.
If you have a mortgage or a car payment, you can purchase term life insurance to help your family cover the costs after you are no longer with them. Many families add a term life insurance policy to their financial strategy to ensure that their surviving spouse and children can maintain their existing lifestyle.
Secure a Term Life Insurance Policy While You Are Young
With life insurance, purchasing a policy while you are younger nearly guarantees that you could pay less for your policy than you would after you get a little older. In fact, securing a term life insurance policy while you are young helps you lock in lower rates for years. Some insurers may offer you reduced rates for the duration of the policy. Compared to other types of insurance, lower premium payments make term life insurance a budget-friendly option for younger individuals who may have a tighter budget.
Buy Term Life Insurance to Complement Whole Life Insurance
Whole life insurance can easily get expensive, but it’s important to ensure that you have enough life insurance to help protect your family if they couldn’t rely on your income due to death. Fortunately, you can create a life insurance strategy that incorporates both whole and term life insurance. For instance, if you can’t afford whole life insurance at the amount that works for your family, you can purchase some whole and some term coverage until you have the level of insurance you need to protect your family.
If you decide to mix and match your insurance, you should speak with a licensed insurance agent to ensure that you have made a thorough assessment of your financial situation.
We’ll help you get the right coverage. Call Insurance Planning Service at (734) 421-9900 for more information on Michigan life insurance.