Why Is Term Life Insurance Suitable For You?
Life Insurance serves as a protection towards your family and dependents in case of your demise. There are certain circumstances which can prevent you from buying a life insurance protection. For such cases, there are multiple variations available in life insurance policies, such as Whole Life Insurance, Universal Life Insurance and Term Life Insurance. Here we are going to see, for whom term life insurance can be suitable. Term Life Insurance provides you a coverage for a specified fixed term, during which in case of your demise a compensation of a lump sum amount would be payable to your family and dependents. Term Life Insurance can be perfectly suitable to you for several reasons. A few of them are listed below:
Years Of Supporting Dependents
Term Life Insurance is perfect when one’s responsibilities are significantly increased. At such a stage, a halt income can bring huge effects on important necessities, such as a mortgage plan or a dependent’s higher education. While commencing a mortgage plan, it becomes important for the head earner to be covered with a life insurance. Your loss in income can lead to your family losing the home as well as forgoing the previous premiums.
An Employee Close to Retirement
Often businesses and companies provide a health and life insurance cover to their employees. Here term life can be the best option for the employer as it can be fixed for a fixed short term, say 4 or 6 years and can also be renewed in case the employee continues. In case of a key personal or any other employee for that matter is close to his/her retirement, say 6 to 8 years, and since it is a fixed and definite period, term life insurance best suits the necessity.
Future Conversion Plan
In case you are planning to buy a life insurance but are not sure about choosing the right one, a term life insurance can be your best option, as it can give you time to change your plan later or a choice to continue with the same plan. Once your term is over, you can renew the plan without any medical tests required or you can change towards a permanent life insurance plan also without any medical tests.