Five Good Things About Term Life Insurance

Why term life insurance might be the right choice for you

Life insurance comes in two basic forms; term and whole life. While each have their good points, it can sometimes be tough deciding which one is best for you and your family. Having a life insurance policy in place in the event you pass away is always a good idea. Without it, your family could be in for some very hard times. Following are a few good things about term life insurance that may help you make up your mind about which type to carry.

You Choose the Term

One of the best things about term life insurance is the fact that you get to choose the length of the term of coverage. You will be able to take out a term policy from one year to more than 25 years in length. The advantage of being able to choose how long the term runs is that as you’re starting out in your adult life–where you’re responsible not only for your own welfare, but for the health and wellbeing of your family as well–it will be up to you whether or not it would be to your advantage to take out a life insurance policy for an extended period of time, or to limit it to a year or two. Either way, you’ll have the option of renewing for another term later on.

You Choose the Coverage

With a term life insurance policy, you are virtually unlimited in your choices when it comes to the extent of coverage. Your only limitation is the amount of money you can afford to pay. Most people who opt for term life coverage do so because it is relatively inexpensive when compared to whole life coverage. When you choose term life, your premiums should be low enough that you can make sure your family will be amply provided for–and the insurance will still affordable.

It’s More Affordable

For young people just starting to raise a family, making ends meet can be difficult. By the time you get through paying for food, clothing, and shelter, in addition to health and auto insurance, you may not have a lot left over. Add the cost of a life insurance policy, and it could strain your budget. This is where having the option of choosing a term life policy makes a lot of sense. Because term life insurance is more affordable than whole life, it is chosen by more than a few young people. Depending on the amount of coverage you take out, your premiums can be adjusted to meet practically any financial plan.

Option to Renew your Term Life Insurance

Another good thing about term life insurance coverage is that when the term runs out, you have the option of renewing the term policy, or switching to whole life coverage. As you age, your insurance payments will continue to go up, but having a term life policy in place will ensure that you’re adequately covered at reasonable rates. When the term expires you may be required to take a physical, but if you haven’t experienced any significant health problems your payments will still be less than they would if you were carrying whole life coverage.

Tax Breaks

Although life insurance payments aren’t automatically tax deductible, there is a way that your term life premiums can be deducted from your Federal income tax. If you are part of a group insurance plan through your employer, the insurance is paid before taxes are deducted by the employer, so you will receive coverage without having to pay taxes on your term life policy. This exemption is good up to $50,000. When you pay for your policy before taxes are removed, you not only receive term life insurance coverage, but you are also lowering the amount of money that is taxable. It is also possible to convert that group policy to a permanent term life insurance policy if you leave the job for some reason. Check with your employer and a tax attorney for details.

This is a guest article was written by Bailey Harris. Bailey writes for InsuranceQuotes.org. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about a 5 good things about term life insurance would also be very much appreciated.

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