Term Life Insurance is certainly easier for most people to understand. You pay a premium and you obtain a certain amount of coverage. (Usually referred to as Final Expense or Death Benefit.) You stop paying and you’re no longer covered.
But some of us want our hard-earned dollars to do more. Such as providing an additional source of retirement income or even be a source of money in case of an emergency.
A term insurance policy will not provide that type of assistance. And, here are a few more things it will not do for you and your family.
- Whether you pay for 2, 5 or 20 years, if you stop paying your benefit stops. You will have built no cash value. Similar to renting a home instead of buying a home.
- The premiums increase steeply as you age and you may be, because of health issues, uninsurable at the end of your policy’s term.
- Some Indexed Universal Life Insurance programs now permit you to accumulate funds for additional retirement income. Term Life Insurance does not provide that option.
- Most term insurance coverage will not provide you with the “Living Benefits Rider” option which would permit you to pull down part of the benefit in case of critical illness or injury*.
- Term insurance does not provide a hedge again inflation or permit you to borrow against your premium payments.
Before making a final decision be sure to discuss all of your options with a qualified professional.
Sonja Cassandra Perdue is the founder of www.HiringInsuranceAgents.com and is a licensed life insurance agent in the State of Illinois. She is available to answer your questions at 773-609-2226
Obtain an insurance quote at www.LivingBenefitsInsuranceQuote.com
*Terms and conditions apply.
*Consult with a professional tax and/or legal advisor before taking any action that may have tax or legal consequences.
*Consult with a professional tax and/or legal advisor before taking any action that may have tax or legal consequences.
*This information is provided for
informational purposes only. This article is not intended to provide tax, legal
or financial advice. Please consult your own professional for advice specific
to your circumstances.
SPONSORED BY
Comments
Post a Comment