Life insurance is a safety net for your family to fall back on if you were to die unexpectedly. Choosing the right life insurance policy is important to ensure that all your debt, credit cards, children’s education and mortgage are covered.
In the absence of a life insurance policy and in the event of your death, all of your debt will fall upon your family who is already having a hard time managing their financial circumstances.
There are two kinds of life insurance policies that are usually offered. These include term life insurance and whole life insurance. Whole life insurance is valid for a lifetime. But term life insurance is only applicable for a limited time period and proves to be a lot more beneficial in some scenarios.
Most people believe that whole life insurance is a superior policy, but there are some scenarios where term life insurance might actually be more useful than its counterpart is. The following are some benefits of acquiring a term life insurance instead of whole life insurance:
Premiums for term life insurance are cheaper and more affordable than whole life insurance. This is primarily because it provides protection for a set amount of time.
The life insurance company needs policies not to pay out, hoping that you’ll outlive the term. If you manage to outlive your term life insurance, you also see the end of whatever you needed this insurance for. It’s a win-win situation.
Term life insurance can be acquired for any number of years. It can be a short-term policy lasting for 5 years when your child is in college. It can be a 30-year long policy when you need to pay your mortgage.
Term life insurance is a viable solution for needs that will disappear over time.
Good For Financially Unstable Families
Since term life insurance doesn’t build up to a cash value and lasts for a limited time, it’s usually much cheaper than whole life insurance. This brings better value to families who are just starting out with their new lives. From caring for young children, to paying off mortgage and auto loans to saving up for college and retirement, young families have a lot to take care of. High premium costs might be the last thing you need on your plate.
If you’re looking for a competent insurance broker in Florida for term life insurance, you can get in touch with us at IFG Brokerage Services. We offer a range of insurance brokerage services including term life insurance, whole life insurance, second-to-die insurance and mortgage insurance among other services!