Term life insurance provides policyholders with several benefits, but it is not a permanent life insurance solution. It is essential to know both the positive and negative aspects before deciding if the option is right for specific circumstances. Consulting a Term Life Insurance Provider in Topeka KS will shed some light on how the policy works, when it is most appropriate, and what should be considered prior to taking out a policy.
Term Life is the most affordable type of policy available, with low payments and fixed terms. Policyholders can elect to take out a policy for five, ten, fifteen, twenty, or thirty years. Many individuals settle on a short term life insurance policy until they decide their goals for the future, or until circumstances change. A man in his twenties, for example, may take out a five year policy to coverage for final expenses. It is inexpensive, easy to get, and eliminates any burdens for his family should he die. When the term ends the individual may be in a better position to afford whole life insurance premiums, may be considering marriage, or may have a family.
A term life insurance provider in Topeka KS may suggest a policy to a couple to supplement insurance benefits provided by their employer. Group policies may fall short of needs if dependent children are involved, if debts are high, or if the family is dependent on both incomes. Term Life provides the beneficiary with a one lump sum death benefit. This type of policy also offers a safety net if people are planning to change employers. Most companies require a probationary period before offering employees a benefit package. During that time, the family would be covered by the term life policy.
Some of the drawbacks include a substantial increase in premiums after the end of the initial policy term. Renewal costs are high, and policyholders have to be prepared for that increase. There are some term life policies that turn into whole life policies automatically at the end of the term. Those have higher premiums than regular term policies, but may be worth it to the policyholder. Term Life does not accumulate any cash value, like permanent insurance does. Once the policy is expired, there is no money that gets paid to the policyholder. Get more information on all possibilities for life insurance prior to purchasing a policy.
