A Term Life Insurance Policy is sold to a consumer for a limited amount of time. The benefit that will be paid to your loved ones will only be paid if death occurs during a set window of time. If death does not occur during that time and the policy expires, the policy has no value and is worthless to your family. This is different than permanent life insurance policies because they are of value to your family when the end of life occurs. Many of the permanent policies include savings accounts so that wealth can accumulate. Most Term Life Insurance Policies do not offer this savings feature.
Provide When the Provider Is Gone
Term Life Insurance provides when the provider is gone. A Term Life Insurance Policy, such as one underwritten by MetLife or Nationwide, is the right choice for you if you are still paying for your home or if you have small children at home. You might choose a 20 year term life insurance policy during the time that your children are small so that your spouse will receive a sum of money in the unlikely event that your death occurs during the years that the children are growing up. This policy will insure that your family home loan is paid in full and that your surviving spouse and children will have everything that they need in the event that you are not there to provide.
Convert Your Policy Later
Term Life Insurance premiums are often less expensive than permanent life insurance policies' premiums. This feature allows everyone an opportunity to provide for their families. Many Term Life Insurance policies can be converted to permanent life insurance policies when the term expires. This is a benefit for many because it eliminates the requirement of a health exam. Many life insurers require this exam before the policy can be instated. If your family has a history of health problems, and you cannot afford a permanent life insurance policy now, the elimination of the health exam is an excellent reason to purchase the term life insurance at a reduced premium level.
Do Your Homework
There are many life insurance companies with a variety of policies. Do your homework and compare policies so that you find the best policy to suit your family's needs. Term Life Insurance is an investment for an uncertain future.