If you are a person in the middle of their lives, planning for your golden years and want to have some assurance that your family will have financial security after retirement, then you might want to consider the possibility of getting term insurance. Term insurance provides flexible term plan selections to fit every individual’s personal requirements. You can select:
The level of preferred amount guaranteed by term insurance policy that can be one time, long-term or periodic pay. You also have the choice of availing short-term and long-term policies. The premiums and benefits of a whole life policy are tax-deductible, while those for term insurance are not. Hence, the term policy provides an opportunity for young working people to invest while at the same time offering the same level of flexibility.
Term policies can be taken for a specific period of time or for the entire lifetime. The premiums payable depend on the duration and pay-out value of the plan. If you intend to pay the premiums periodically throughout the period of the plan, then your returns will be spread over a fixed period of time. If you intend to invest the premiums in a mutual fund or other investment vehicle, then you would have to undergo medical exam and pass the examination. Regular premium payments will be returned to the individual at the end of the term.
There are many advantages of taking a level term policy. The first advantage is that you can reduce the premium payments by paying it only partial amounts each time. The second advantage is that term policies do not require any medical exam. In case of whole life insurance policy, you need to go through a medical exam every time you wish to get your premiums credited. Thus, you need to spend more on medical exam expenses.
Many insurance companies offer level premium term policies. The best place to search for them is online. You can search for them with the help of popular search engines. You can compare various terms policies offered by different insurance companies and select the one that suits your requirements. Online purchase of term policies is very convenient.
Some term life policies allow you to convert it into a cash value life insurance policy. You need to buy a term life policy from a reputed company. After getting a quote from a company, you need to pay all the premiums. If you do not pay the premiums on time, then the policy comes into force and you lose all the cash value. A cash value life insurance policy lets you convert a term life policy into cash value. This is a great option if you want to get the highest return on your money.
The third and final type of whole life insurance policy is a combination of both term and whole life insurance policy. It offers high return premiums along with a fixed premium and death benefit. While the premiums are low, the death benefit and the grace period are high. This type of policy is best suited for those who want to have a high cash value and moderate premium. It is also a handy option for the people who want to have a high cash value but not go for high death benefits.
Whole life insurance provides you with a chance to plan for your retirement. Term policies can also be helpful in times of family needs. For example, during your golden years and after, you can convert your term life insurance into a whole life policy to provide you with a high cash value and security. However, before making a choice, you should compare various options available in the market so that you can get the best one suited for your family needs.