You are 40, and your kids are still carefree and young in their early childhood days. And the uncertainty of life threatens you. What if something happens to you tomorrow? How will your family survive?
You are young, and you have time to live your life. However, you can also invest and wonder how to protect your family’s future.
In both cases, one thing is certain; there is no age limit to start an insurance plan. So, if you are healthy and can pay premiums, you can secure your family’s future.
Why Does Your Family Need Life Insurance Coverage?
Recent trends have shown that circumstances might end your life at any point, regardless of how healthy you are. A sudden heart attack or an accident, and your family’s future hangs in the endless abyss of uncertainty. How will your kids complete their education after a few years when you won’t be around? It is a scary thought, isn’t it?.
In addition, the COVID-19 pandemic only taught the masses that one must be insured and ready for future uncertainties.
Term life insurance is a good alternative to fight your family’s future uncertainties. If you are unaware of the nuances of term life insurance, you will need an expert agent to help you buy the right term life insurance in Phoenix.
What is Term Life Insurance?
A term life insurance plan is one where your family receives the agreed payout if you pass away within the stipulated time of the policy.
For example, you are 40, and you want to ensure that your family lives comfortably if something happens to you. So, you buy a 10-year term life insurance with a payout of $500,000 after undergoing the required medical checkup (if it’s needed). After that, a premium amount will be agreed upon, and you will start paying it.
If anything happens to you within ten years of buying the policy, the nominees will receive the agreed payout.
Why Should You Buy Term Life Insurance?
There are several benefits of buying term life insurance which you must check out.
Different policies offer different coverage. Some might provide you with coverage until 75 years of age. The standard terms of term life insurance policies are ten years, 15 years, 25 years, etc.
If you haven’t bought a term life insurance policy because you were scared of huge premiums or digging holes in your pocket, you don’t need to worry, as term life insurance premiums start as small as $10 a month, depending on your age, health, gender, and coverage amount.
If you are diagnosed with a critical illness during the term life insurance, you can receive a partial or lump sum payout of your benefits.
Conversion To Whole Life Insurance
There are certain term life insurance plans which offer to convert your term life insurance into a permanent policy, such as whole life insurance. Whole life insurance covers you for life, and the beneficiaries receive a payout after the insured’s death. It has a cash value component, and can also have living benefits. However, whole life insurance is not a fit plan for everyone.
Term Life Insurance Vs. Whole Life Insurance
Most often, whole life insurance is considered a better option, but you must weigh your options before choosing one.
Usually, term life insurance is preferred by most people because it has an affordable premium. But, on the other hand, whole-life insurance premiums are high, which is not everyone’s cup of tea.
Term life insurance plans are good for people who are the only income earners in a family; for example, if you have a nuclear family and young kids, term life insurance is for you. Or if you have a surviving spouse after you, it is a good option. Whole life insurance is for those who want to leave a substantial amount for their successors, no matter when in life they pass away.
In term life insurance, beneficiaries are only entitled to the agreed payout, and no saving component exists. On the other hand, whole life insurance policies offer payout and a cash value that accumulates over the years and can be withdrawn anytime you need it.
Most term life insurance policies expire during the insurer’s lifetime, resulting in no benefits. But, on the other hand, the whole life insurance payout is guaranteed.
Do Term Life Insurance Premiums Lapse After the Expiry?
In most cases, yes, the insurer does not get the premium back. Still, many insurance companies offer term life insurance plans where you can renew the policy or receive your premium amount.
Term Life Insurance in Phoenix
If this article covers your entire knowledge of term life insurance, then you need an expert to guide you and help you explore different term life insurance.
At Heroes Financial Group, our expert agents have substantial knowledge of different plans and give their best to find you a tailor-made policy.
For term life insurance in Phoenix, choose Heroes Financial Group. Contact us now!