Here are some advantages of investing in term life insurance:
- If you die before your policy reaches its maturity age, the proceeds will go to the person or persons designated in the policy.
- It's a simple and painless process. You can buy and renew coverage without even visiting a doctor's office.
- Term life insurance costs less than many retirement plans at first glance; it equals nearly half of what whole life coverage costs yearly with no cash value buildup.
- The premiums are generally predictable, so cost is not unpredictable when you need it most.
- It offers protection against catastrophic risks such as high medical bills or mounting debt that would otherwise be financially burdensome for your loved ones to pay off in their lifetime.
- If you're self-employed, you can use the money to replace lost income.
- If you have a spouse who is highly dependent on your income, term life insurance can be used as a safeguard against any risks that are life-threatening.
- You can build cash value in some forms of life insurance policies, such as universal and variable.
