Low Cost Term Life Insurance – Until When?

2007-03-08 10:33:40

( Insurance )



You may have a family depending on you for financial support. But, at this stage in your life, you still do not have enough assets to assure their financial security in case something happens to you. To address this concern, you should look for a term life insurance company that offers low term life insurance cost.

To be competitive nowadays, a term life insurance company must be able to offer low cost term life insurance products that are affordable to young people just starting out. There are a number of these products now available in the market.

However, you should not forget that term life insurance cost is low simply because term life insurance is pure life insurance coverage and nothing more. Unlike permanent life insurance, there is no savings or investment element in low cost term life insurance.

It is thus important for you to have a clear purpose in mind when you buy low cost term life insurance. You may simply want to ensure that cash benefits go to your beneficiaries in case of your death, or that the mortgage on your house gets fully paid. Whatever your purpose might be, a term life insurance company is usually able to tailor a low cost term life insurance product to match your needs.

Ordinarily, you buy term life insurance with a one-year expiry and the premium that you pay is dependent on your age. After the term life insurance policy expires, you must renew the term policy. It is now possible for a term life company to offer policies with 5-year or even longer terms.

As you grow older, your term life insurance cost increases every time you renew your policy. The initial low cost term life insurance that you purchase now will be too costly to maintain later. There will no problem if your financial status will improve as you age. By then, you will not worry about the term life insurance cost. Or, perhaps you can already afford to buy permanent life insurance.

When you are young and just starting to have a family, it is practical to purchase the low cost term life insurance for your family’s protection. However, as you advance in years, you should re-evaluate your life insurance coverage and ask if there is still low cost term life insurance available in the market.


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