If you wish to safeguard the financial security of your loved ones after your death, consider taking term life insurance. There is no guarantee in life. Anything fatal can happen at any time. Term life insurance has significance in many circumstances. Term life insurance refers to the insurance policy that assures payment of the death benefit stated in the policy when the covered policyholder dies during the period of coverage. Once the term expires, you can either renew the policy for another term, convert the policy to ensure it provides permanent coverage, or allow the policy to terminate. Here are some of the advantages of taking term life insurance:
Low Premium and Great Death Benefit
Term life insurance may help you acquire great death benefits while paying the low premium outlay when you get the policy. It does not mean term insurance has the least premium among the different insurance available over the time duration of the coverage. It is because the term premiums may increase at each renewal. But, it starts at a low premium cost.
Are you considering a policy for temporary or short-term needs? Then, term insurance seems like the best alternative for such needs. It is the ideal option when you need protection for less than ten years. If you want coverage for more than ten years, you need to consider other options. According to the rule of thumb, the term insurance seems perfect for policyholders below the age of forty-five.
Perfect Option for Young People
Young people who are planning to get an insurance policy can start with term life insurance and medical health care in Tampa. It offers more coverage at low immediate costs. It offers coverage more than their immediate requirements. Hence, term life insurance guarantees necessary coverage in the future when their requirements and obligations towards the family increases. Read more about life insurance in our related blog post 5 Simplest Ways of Choosing the Right Life Insurance Plan.
Higher Future Death Protection
The conversion feature of term policies provides the policyholder with higher death protection. It includes convertible and renewable term policies. The death protection offered remains higher than the one you can afford. This type of insurance allows you to lock in the premiums. When your ability to pay premium increases, you can build cash values.
Meet Specialized Needs of Policyholders
You can combine term life insurance to meet your specialized policy needs. There are three types of term insurance such as increasing, decreasing, and level. Combining the policies as riders with other permanent insurance types can help you create a package to meet the policy holder’s special death protection. It also meets the affordable and savings needs.
Beneficiary Gets the Proceeds of Death Benefits Without Delay
Term life insurance proceeds get paid to the beneficiary without any delay when it does not come under the probate estate of the policyholder with the estate named as the beneficiary of the policy. Beneficiaries never have to wait for too long to get the financial support they need at the time of need.
People who wish to keep the information regarding their insurance policies can opt for term life insurance. No public record regarding the death benefit amount or the beneficiary information remains available. It is specifically helpful when the beneficiary is different from the policy holder’s estate.
Not Subject to Federal Income Taxes
The death benefit proceeds of term life insurance do not come under taxable income. Hence, it is not subject to the taxes of federal income.
Exemption of Taxes in Certain Situations
In some cases, the death benefit proceeds from the term life insurance do come under the estate taxes. It occurs when you have provided your spouse’s name under the beneficiary. It aids the widower or the widow to pay a large amount of taxes to the federal government. But, this rule is not applicable when you have provided siblings or children as the beneficiary. In such cases, the benefits come under the estate taxes.
Use the Term Policy for Collateral Loans
You can use the term policy as collateral for getting loans from a bank. You can use it as security for personal loans. Lenders prefer policies of permanent type due to their cash values. But, lenders accept term policies if you have a good credit risk with high chances of repayment of the loan. The lenders lend money by keeping the term policy as collateral unless you face a high risk of death.
If you are thinking of getting term life insurance, then get it from a reputed platform such as FM Financial Group. With a team of experienced and trusted agents, you can get the insurance policy suiting your needs. You can choose from diverse policies available to safeguard your life, health, and finances. You can discuss the different options that will ensure peace of mind with the financial protection offered by the ideal policy.
The experts can suggest the best life insurance and health insurance plans option to meet your specific needs. The affordable policy solutions will aid in planning and shaping your financial future. Just call (813) 760-7255 or fill out our website’s contact form