Term Insurance can often be the best choice of life insurance protection since it can meet your needs now and fit comfortably within your budget. Term policies are commonly issued for specific periods, such as 5, 10, 20 or 30 years. Policy premiums stay the same for the specified period, and provide clearly outlined premium increases at each renewal period.
Term insurance is normally the most affordable of insurance product. It provides a fixed amount of insurance for a relatively low premium. This is particularly valuable to cover aspects such as debt and mortgages, or to create a pool of funds to replace lost income due to death.
Some additional benefits are:
- Tax-free death benefits can bypass probate:
Proceeds of Term insurance policies are paid directly to a named beneficiary tax free, bypassed the estate and avoiding probate.
- Conversion Options:
Some policies allow for conversion into permanent policies without providing evidence of insurability. This is of value as your insurable needs will change over time.