When shopping for life insurance, you will be faced with a choice between two broad insurance types. There is permanent, or whole life insurance and then there is term insurance. Permanent insurance provides life insurance for as long as you continue to maintain premium payments in a timely manner. Permanent insurance can also build cash value as the years progress.
On the other hand, term insurance provides protection for a specific period of time, or “term,” and doesn’t generally accumulate a cash value.
In recent years, particularly, term insurance has grown in popularity. Why are so many people choosing term life insurance?
Perhaps the biggest reason term insurance is so popular is that on a cost-per-thousand basis, term insurance is less expensive than permanent insurance. In other words, $500,000 worth of term life insurance will be cheaper than the same amount of permanent insurance.
This is important for a young family with a mortgage, debts, and potential college expenses to cover. That large amount of protection may not be needed once parents become empty-nesters, so a large 20-25 year term insurance policy can cover this critical period.
Another factor is that Millennials and younger have more of a “pay for just what you need” attitude. Many prefer to rent as opposed to buying a home, lease as opposed to buying a car, and enjoy ride-share and scooter services.
Term insurance better allows younger families to afford the coverage they should have.
If your life situation dictates a large amount of life insurance coverage, term life insurance may be your best option.
Contact one of our independent insurance agents to get a no-obligation price quote on term life insurance. Because our independent agents are not captive to one company, they can search a network of providers who offer exceptional term insurance products. You may be pleasantly surprised with just how affordable it can be. As an independent insurance agent, we can search a network of companies to find your best value. Reach out to us today.