Term life insurance pros and cons | Advantages

A term life insurance plan, also known as the term insurance policy, is a type of life insurance that pays out to the nominees in the event of the insured death. In exchange for this guarantee, a set of amounts of premium is deducted at regular intervals. In addition, purchasing a term insurance policy during the current COVID 19 outbreak is a must. So before you have to buy a term life insurance policy let us check the term life insurance pros and cons to better understand this topic.

Pros OR Advantages of term life insurance: 

  1. It is greatest death benefits for lowest premium outlay term life insurance advantages.
  2. Term policies can be combined to serve the specialized needs of individual policyholders.
  3. A term policy is the best alternative for temporary and short time frame needs.
  4. Younger clients may acquire more coverage at lower immediate costs.
  5. Conversion features of renewable or convertible policies provide higher future death protection.
  6. Preserves confidentiality.
  7. Lower premiums when you are younger.
  8. can be converted to whole life insurance.
  9. Policies can be used as collateral for loans.
  10. Death benefits proceeds are exempt from estate taxes in certain situations.
  11. Beneficiary proceeds are not subject to federal income taxes.
  12. Proceeds can be paid to the beneficiary without delay.

Cons OR Disadvantages of term life insurance:

  1. It is temporary coverage.
  2. Must re-qualify at the end of the term.
  3. Difficult to qualify if there is a significant health issue.
  4. Policy accumulates no cash value.
  5. Premiums can go every time you take out a new term.
  6. Most returns of premium plans require a higher premium payment.
  7. The policy should not be considered as an investment plan.

Thank you for reading this article. If you have any queries regarding our article on the Term life insurance pros and cons of then do comment in the comment section below.

 

Explore more information:

  1. Health insurance pros and cons
  2. Mutual funds pros and cons
  3. Permanent life insurance pros and cons

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