The Pros and Cons of Term Life Insurance
Term life insurance is one of the most popular forms of life insurance on the market today. At Starlight Financial, we want to help you make the most appropriate financial decisions for you and your family, which is why we have provided the pros and cons of having term insurance.
There are
several pros to term insurance, which makes it easy to see why it has become so popular. This insurance is also appropriate if you only need life insurance for a finite amount of time. For example, term life insurance is great for young families who need protection against the loss of a primary income earner, but only until retirement when the family would be relying on savings rather than income. Term insurance is simple to understand, which makes comparison shopping simple. Additionally, the market for term insurance is very competitive, so consumers can get the insurance they need at lower prices. There are also options for term insurance that can later be converted into permanent coverage, in case you later decide that permanent insurance is right for you.
Even though there are several pros, there are also
cons to term insurance. One of these cons is that once the term runs out, the policy is not valuable. It is difficult to predict how long you will need life insurance for, so having a policy that expires can be scary for some people. Also, the premiums on term life insurance increase as the policy holder ages. Term insurance also accumulates no capital, so if the policy isn’t used, the policy holder receives nothing. Finally, once the terms of term insurance are set, there is no flexibility, so you cannot increase premiums if you should decide later that you need to.
Deciding which type of life insurance will best protect your family can be difficult, but Starlight Financial is here to help. We have locations in the New Albany/Louisville area, Lexington, Pikeville, and Florence, KY, Phoenix, AZ, Kingsport, TN, Linton, IN, and Fredericksburg, VA. Soon, we will also have a location in southern Illinois. Our professionals want to help you through all the financial stages of your life.