Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. It was developed to provide temporary life insurance protection on a limited budget. Term insurance is well suited for short-range goals such as life insurance coverage to pay off a loan, or providing extra life insurance protection during the child-raising years.
One of the biggest advantages of term life insurance is its lower initial cost in comparison to permanent life insurance. Term life insurance policies have no cash value accounts, policy loan provisions or other features typically found in permanent life insurance policies. With term life policies, you’re generally just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy.
Paying for life insurance hurts! But few can do without it. The key is to buy life insurance only for losses that you can not replace, such as your income. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer. You’re better off with insurance for any loss of life for a small increase in the life insurance quotes.
It is, as if by avoidance, we can delay having to face the fact that dying will happen to all of us. Our routines continue and we make new commitments while not knowing whether our deaths will be premature.
In contrast, imagine the security of knowing that by purchasing life insurance, we are setting an example of responsibility and caring. There will be cash to pay for a wedding or a down payment on a home or funds to finance an education. Think about it. A life insurance policy will provide you with the actual ability to have a positive influence on the future of those you love.