What is the benefit of term life insurance over other types of life insurance?

Answer 1

There are several benefits of term life insurance over other types of life insurance:

One of the main advantages of term life insurance is that it has much lower premiums than most other types of life insurance protection, such as whole life insurance.

Because a term life insurance policy is temporary, the chances of the death benefit being paid out are much less than with a permanent life insurance policy. That means a big savings on your monthly life insurance bill.

The death benefit of a term life insurance policy is only paid if the insured person dies during the term of the policy. Term life insurance policies don't offer you any cash values. Term life insurance policies are used for only for protection - not for investment purposes.

The Advantages of Term Life Insurance:

A term life insurance plan protects your family when you can't be there provide for them. There are several advantages of term life insurance, including:

Low Premiums - The premiums on term life insurance policies are the least expensive you can find.

Flexible Terms – You can choose coverage for a number of years that meets your family’s needs.

Maximum Coverage - Because term life is so affordable, you can provide more coverage for your family.

Low Initial Cost - Compare to whole life insurance, term life is much less expensive to start a policy.

The Option for a Permanent Plan - Most term life insurance policies will offer you the option to convert your policy to a permanent whole life insurance plan after a certain period of time. Changing to a permanent policy will be cheapest the earlier you decided to convert your policy.

Invest the Difference - Because term life insurance can be much less expensive than whole life insurance, you can invest what you would have had to pay with a whole life policy.

I hope that helps! Best of luck to you.

Answer 2

What is the advantage of a hammer over a screwdriver?

Both are tools that can be used to drive a screw or a nail into a piece of wood. One does the job better than the other.


The same with term and permanent insurance.

Term insurance is meant to cover a TEMPORARY life insurance need. If that need disappears later in life, the insurance can be dropped.

It is rare for a person to have his/her TOTAL insurance needs completely disappear. He/she will still need fund to pay the undertaker.

The main advantage of term is that it is so much less expensive than other forms of insurance. It is also most likely never to pay a death benefit. Most people (98%) outlive the term insurance that they buy.

Why not buy BOTH term and permanent insurance?

Go meet with several financial professionals and discuss what might be best for you. As a lot of 'what if' questions like what if I live longer than 30 years? How will my bill be paid if I die and still have a large mortgage?

Good Luck.

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Answer 3

You can purchase more life insurance for less premium than whole life, variable life or universal life products. However, term insurance goes for a period(term) of 1-30 years. To renew after the term you will wish you had died when you see the new premiums. You are basically renting insurance. You pay so much a month or year and you see no return of your money unless you die within the term of insurance. It is a great product that is for the right time and right place. Different insurances are recommend for different people depending on there particular circumstances. You can go to www.concordfinsvcs.com to check up different insurances. Bottom line is if you do not currently have life insurance go get some.

Answer 4

Term insurance -where insurance is purchased for a specified period (typically a year, or for level periods such as 5, 10, 15, 20 even 25 and 30 years) where a death benefit is only paid to the beneficiary if the insured dies during the specified period. on survival nothing is payable Permanent life insurance is a form of life insurance such as whole life or endowment, where the policy is for the life of the insured, the payout is assured at the end of the policy (assuming the policy is kept current) and the policy accrues cash value.

Answer 5

Term insurance is used to provide money to heirs in the case of death. When it expires, a new term insurance policy must be taken out to stay protected. The cost is based on age and health factors. You do not get any premiums back.
Whole life insurance, Universal provides a set amount if you die and you also build up savings. You can end your policy and you will receive cash. I have always been told whole life is a poor investment.

Answer 6

Be very careful with the answers you receive. You don't know the qualifications or motives of the people that answer.

From my point of view the answer is pretty clear;

Term Insurance is only buying "insurance". In general it's good to age 65 (but there are policies that go beyond that).
Best types of term insurance are: 20 or 30 year certain (for most people).

Other type of Life Insurance have a "cash value" at the end of the policy term. IT IS ALWAYS BETTER TO INVEST THE DIFFERENCE BETWEEN THE COST OF TERM AND WHOLE LIFE TO ACHIEVE BETTER THAN THE CASH VALUE. Agents make much less money selling term insurance.

Comparing term insurance to "renting" is ridiculous. Most people don't need life insurance after their house is paid for or they don't need it after age 65. Either way... it makes sense to invest outside a high commission, low return life insurance policy with "cash value"

Answer 7

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RE :What is the benefit of term life insurance over other types of life insurance?
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Answer 9

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