Many people are afraid of dying and they even do not want to think about it. Because of the desire to leave something behind them, they are choosing to make some kind of leverage for the loved ones by making an insurance policy. No matter how much we don’t want to think about it, we are not immortal creatures and sooner or later that day will come.
Making an insurance policy can be a smart move if you make the right decision and choose the right thing for you. Here are a couple of reasons why your decision should be term life insurance:
- Much cheaper than the permanent insurance policy.
- Flexible time period starting from one year; longer the period the bigger the premium.
- Possibility for renewal.
- Premium return payment after the time period ends depending on the form.
- It provides more premium dollar coverage if it is made in a short time period.
The term life insurance policy is much cheaper than the permanent insurance policy and it can even provide more premium dollar coverage if it is made up to 10 years. That’s because of the short time period and the highest possibility of not making a payment to the client. This option is available with an assumption that the client will have no health issues.
The shortest period that this policy can be made for is 1 year and usually, the insurance company must check your insurability when choosing this option. In fact, this is a very rare case, because the casual term policy is from 10 to 30 years.
Possibility for renewal is an option form with the level term life insurance policy, which is offering a benefit of prolonging the insured period and it includes the time value of the money which lays on the interest rate and the inflation rate.
Choosing this type of insurance policy is definitely the right one if you opt to make one in the first place. With some special forms of this policy, we are even making a money investment which can be later premium returned. Leaving money to your loved ones will not reduce the pain, but it may help them pay off the debts, treatment in case of invalidity and all postmortem expenses.