We all need life insurance and the one that we usually choose is term life. All pools and studies say that this is the number one life insurance sold in USA. The reasons behind this are – its simplicity (it provides basic coverage) and its price (cheapest form of life insurance). This may be news to some, but there are other insurance products that can offer more and are also adjustable and flexible to suit all our needs and changes throughout the life. Whole, universal and variable policies can provide more than just basics.
While term life policy can be used to cover for any loans (such as mortgage) and to provide security for those dependent on us in case of our premature death, other types of life insurances can and do present an opportunity to either save or earn some money on the one hand, while they can also be adjusted to our financial situation on the other hand. Our lives are never constant and there are changes which usually require adjustments (career changes, kids etc.), therefore life insurance policy should be adjustable as well, the problem with term insurance is simple – it doesn’t offer those options.
The good thing with other types of life insurance is, they can be shaped in such way to fit into your pocket quite well regardless of your financial status (or some difficulties in your life) or events that may in a major way influence your life. Without going too much into technical details, let’s take a look at some examples.
- Double sum in case of death in an accident – exists in term and other life insurance policies but with first you can either have it or not. Should you choose other than life term policy this option can be added later and can be paid for only limited time period (after a childbirth for example)
- Appearance of serious health conditions can also be covered by life insurance policy, same as with the above example, term life only offers to have this option or not to have it
- Savings for education – college, term life can be bought to provide money for your kids in case you die, other types of insurance do have an option of saving and providing money in a form of interest rates on certain amount of what you have paid with a policy
Those mentioned above are just some of the options that exist with term and other forms of life insurance – the difference is you can either have them or not with term, while you can add or remove them with other forms of life insurance. Just consider all those options before you buy life.
