Why term life insurance is so beneficial?
Term life insurance is the type of policy that best applies for people who have a responsible view over their life. This type of life insurance protects your family and business from unpredictable and tragic circumstance for a price that's much lower if compared to whole life insurance policies. Under a term policy you are covered for a specific coverage amount during a specified period of time, which can last from 2 to 30 years, depending on your choice. In case the policyholder dies during this term his beneficiaries will receive the stipulated death benefits. However, if the policy term expires and nothing happens to the policyholder the death benefits won't be paid out.
Term life insurance is particularly useful in situations when you have particular financial responsibilities during a specific period of time. For example you have a mortgage to be paid out or want to make sure your kids will go to college. Term life insurance provides the necessary financial back-up for your family in cases something happens to you during this important period and won't be able to support your loved ones in order to meet your family goals. And it's more affordable than having a whole life policy so having this type of life insurance won't become a burden for your family budget.
The most important benefit of term life insurance is of course its flexibility. You are free to choose the term during which the policy will be active and the premiums should be paid out. When you buy whole life insurance you are forced to pay premiums for the rest of your life for the policy to be valid. With term policies, you can get coverage for any period of time and either prolong the policy when the term expires or even convert it to whole life insurance policy if you feel it's necessary.
Term life insurance also addresses your needs in a more reliable fashion. Because you can review and adjust your policy every couple of years it better reflects your current and future needs that will definitely change in the course of your life. Getting married or divorced, having kids, moving to another house, getting additional loans – these circumstances require you to review your insurance needs and it's much easier to adjust your policy if it's a term policy. Besides, the market of term life insurance is more competitive so you can always get better rates by shopping around a bit.