Low Cost Term

Advantages/Disadvantages of Term Insurance

Term insurance is ideal for families where protection is needed, but a minimum outlay of funds is necessary. Term also works well as a supplement to cash value insurance. Another common purpose of term insurance is to purchase it as protection against debts such as mortgages, auto loans or education loans.

On the negative side, term insurance provides only temporary protection, and there may come a time when an insured has no protection after the term policy ends.

Benefits of Term Insurance:

Needs change over time and flexible term insurance can mirror those changes. It acts as temporary insurance to meet your temporary needs. The necessity to provide protection for a family starts out high, but generally diminishes over time as children reach maturity and savings plans accumulate.

As the name reflects, term insurance provides coverage for a specific period of time, a term. At the end of the period, most policies may be renewed at an increased premium rate for the next period.

More buying power:

Term insurance is designed to offer the largest amount of insurance protection at a relatively low cost. Because its cost is so reasonable, term is usually recommended for young families. It affords buying power for a larger amount of protection than permanent forms of insurance.

Not a compulsory form of savings:

Unlike whole life Insurance, term has no forced savings element. It provides pure insurance protection, having no mission other than to pay a death benefit to the beneficiary.

Invest elsewhere:

A whole life insurance policy turns out to be a compulsory form of savings rather than a plan of insurance. With most having less than a 4% rate of return over time, the savings results are rather dismal. Smarter to buy term insurance and invest the difference in premiums in a tax-favored, high return, retirement plan.

There are some instances where permanent forms of insurance are needed when settling ultimate responsibilities, such as state tax liquidity. But if you have large and temporary needs for life insurance coverage, term insurance is the better choice. Pure insurance protection can afford you more than adequate coverage to replace lost income for the benefit of your family.

Please call us. We can quote your low rates over the phone and get your term insurance needs satisfied. We can help.