When shopping for life insurance, everyone has to answer the initial question: term life or whole life insurance? While there are advantages and considerations for both, here are four reasons to consider buying term life insurance and understanding what term life insurance is.
Term Life Insurance Offers Affordable Coverage
Term life insurance is arguably one of the most affordable life insurance options. Because it doesn’t build a cash value and only covers a specific period of time, it’s often going to be less expensive than whole life insurance.
Term Life Insurance Provides Multiple Policy Options
With different term life insurance options comes more flexibility, meaning you’re only paying for the coverage for as long as you need it. The typical term lengths are 10, 15, 20, 25 and 30 years.
Term Life Has Several Key Advantages
There are several benefits of purchasing a term life policy, with some of the most prominent key features of term life insurance being affordability and simplicity. Other benefits include:
- Flexible payment options
- Pre-existing condition-friendly
- Fixed premiums
- Peace of mind
Term Life Insurance Can Be Converted to Whole Life Insurance
Many term life insurance policies will include a built-in conversion rider that allows you to simply make the switch to a whole life insurance policy. There can be many benefits to converting your term life insurance policy to a whole life insurance policy, including:
- Skipping the medical exam: Since you already completed a medical exam for your existing term policy, there is typically no medical exam required when converting and you shouldn’t have to go through the underwriting process again. This could vary from policy-to-policy.
- Partial conversion: If your life insurance company allows it, you might be able to convert just a portion of your term policy into a whole policy.
- Cash value: With a permanent life insurance policy, you have the opportunity to build a cash value alongside the death benefit.
- Lifetime coverage: As the name suggests, permanent life insurance provides coverage for the rest of your life, which can be an added benefit for those looking to provide financial support to their family when they pass.
Ready to look at your term life insurance options? Let SelectQuote help.
With lower insurance rates and transparency, it’s easy to see why term life is the most popular life insurance option. At SelectQuote, we work with some of the most trusted term life insurance companies and can give you unbiased term life insurance quotes and price comparisons in just minutes. Even if term life insurance is one of the most straightforward types of life insurance, you’ll still want to be informed about all of the options available to you. We’ll take the time to find the term life insurance coverage that best fits your needs and budget.