Understand the Benefits of Term Life Insurance Policies
The Advantages of Life Insurance
There are many benefits to holding an active life insurance policy. The benefit of life insurance coverage today gives you the peace of mind that your loved ones will be cared for financially in the event of your death. Life insurance allows you to plan for, and meet many financial obligations that may be passed on to your family if no such plan is in place. These obligations may include payments on your home mortgage, business loan or ensuring your children’s college is paid in full. Another advantage of life insurance is you can purchase the amount of protection specific to your financial needs and circumstances. Insurance is simply an affordable way to protect your family’s financial future.
The most fundamental life insurance policy is known as Term Insurance. It is good for a particular period or "term" of time from one year, ten or up to 30 years. Term insurance guarantees that the amount of coverage remains level, or the same, for the lifetime of the covered individuals. To determine the amount of life insurance you should purchase, you can get a Term Life Insurance Quote Online.
Another advantage life insurance provides, is the additional coverage needed to meet changing lifestyle needs. You can purchase riders to add to your existing Term Life Insurance. A few of the typical rider's available include:
- Waiver of Premium: In the event that the insured becomes disabled, this rider will pay the premiums on your life insurance policy for the duration of its term. The definition of "totally disabled" may vary from one insurer to another, making it important to be aware of the conditions of this rider.
- Accelerated Death Benefit: This rider is included in most policies at no additional cost. It provides that a portion of the death benefit becomes available to help with expenses, should the insured be diagnosed with a terminal disease and their lives be shortened considerably.
- Child Protection: This rider relieves the financial burden to the family and typically provides a guaranteed conversion option to a permanent policy, multiplying it up to five times the original face amount. Grieving parents are guaranteed the ability to purchase lifetime coverage for a lost child without requiring a medical exam.
- Pay off funeral costs
- Pay for medical bills
- Final estate settlement costs
- Pay Taxes
- Pay off Legal fees
- Outstanding debts
- Provide for food and clothing
- Pay utilities