Should You Settle For A Term Life Insurance Policy?
Price is always a consideration, even when insurance policies are concerned. This is why a term life insurance policy has become very popular in recent years. A term life insurance policy offered the same features and benefits of a conventional life insurance policy, albeit restricted to a certain term, hence the label term life.
A lot of people are settling for these types of policies these days, but should the term “settling” be the right word? A term life policy is replete with so much to offer for your stated beneficiaries after your death. Is it proper to say that a term life policy is a mere second choice then? Let’s take a deeper look at the intricacies of a term life insurance policy.
The Benefits Of A Term Life Insurance Policy
A term life policy is a very advantageous choice. This policy is bestowed with so many benefits that is worthy of serious consideration. Let’s study these benefits of a term life policy:
* The premium of a term life policy is more affordable, hence, it has become a lucrative option for people wanting to avail of the benefits of a life insurance policy but cannot afford the usual monthly payments.
* A term life policy offers the same benefits for the beneficiaries of the insured, and in some cases, a term life insurance policy even offers more benefits for them.
* A term life policy goes well with any financial plan. Parents, for example, can avail of a term life insurance policy that would guarantee their children’s education in the event that something happens to the insured parents during the term of the said term life insurance policy.
* A term life policy can be settled, or sold, by a person above 65 years of age or by an insured who is suffering from a terminal disease.
The Disadvantages Of A Term Life Insurance Policy
This is not to say that a term life policy is not without disadvantages. Let us take a look at the restrictions imposed on a term life policy:
* A term life insurance policy would only insure the person for a certain period of time. Once such period lapses, the policy must be surrendered.
* The grant of a term life policy may take a longer time to approve. Much study would be made by the company offering the term life insurance policy before any application may be granted.
* A term life policy demands utmost honesty and good faith. You cannot lie on your application for a term life policy, especially with details about your medical history. Material concealment in the application for your term life policy would result in the cancellation of the same.
* The rejection rate is higher in applications for a term life policy.
The propriety of availing of a term life insurance policy would depend on your needs. You’d be able to work with the restrictive terms of a term life insurance policy, you’ll most certainly reap a lot of rewards from the same.