If you die within the coverage period, then your beneficiaries will receive a payout that can help them recover from your loss. However, if you outlive your policy, it will expire without you getting anything. This is the main pro and con for term life insurance.
Is it a good idea to purchase a policy? Let's look at more pros and cons.
Other types of life insurance can get confusing. With all the different terms and conditions, it is not easy to keep track of what you are due and not. How much pay out are you expecting? What are the factors affecting my cash value? If you want a simple and straightforward policy, Term Life Insurance is for you.
As mentioned earlier, this is also the most affordable life insurance policy. It is a price competitive market and you can easily compare the different offerings from each provider.
It is easy to opt out of your policy since the terms are very straightforward. You are also given the option to convert, or renew the plan that you have if you feel it appropriate.
Premiums increase as you age
One of the main advantages of term life insurance is its affordability. However, as you grow older, this advantage shortens. Prices will increase as you get older and it may even be difficult or impossible to get depending on your health condition.
Does not earn cash value
Other life insurance policies will earn cash value over time. Since it is long-term in nature, it has the ability earn cash which you can use even if you are still living. Either by withdrawing or borrowing from the cash value, you can use it to finance different requirements while you are still alive.
At Jonathan Leonard Insurance , we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (302) 887-9025 or Click Here to request a free quote.