Five Reasons Term Life Insurance Is Right For You

Many people often confuse the different types of life insurance available and opt for the most common option that includes whole life insurance and permanent life insurance, hoping that it will work as an investment to acquire wealth overtime. Unfortunately, these types often have poor returns with inaccurate projections. Term life insurance is most recommended by experts due to the affordability each month and customizable plans. 

1. Affordable Rates

Whole life insurance can often cost an average of $100 a month, making it difficult to obtain for most households for an annual cost that adds up to thousands of dollars. Term life insurance costs as little as $7 a month, making it a more viable option that still has large payouts with a $100,000 policy. This makes it easier to purchase enough to cover all of the needs instead of getting the bare minimum since it's so affordable. Don't be afraid to shop around at SelectQuote.com or an easy online marketplace to obtain the best rate available for a long-term or short-term investment.

2. Simple Plans

The ins and outs of permanent or whole life insurance can often be difficult to understand, a risk for those who are inexperienced with the requirements that can be easy to get stuck in. Term life insurance is often more simple for basic coverage that can be easy to manage for those who may be new to life insurance.

3. Customizable Plans

Term life insurance is often considered a better option because the coverage can be customized by the individual, between the different term lengths of 10 to 30 years, to the different coverage amounts.

4. Invest Yourself

Instead of having another party invest your money, you can do it yourself for a better chance of earning more money and monitoring the investments more closely. It can also be easier to find better investment opportunities doing it yourself than trusting someone who may be less careful or wise with the money.

5. Coverage for Short-Term Needs

Many people do not realize that life insurance does not need to just be purchased for long-term purposes, but can also be used for a child's college tuition or to pay the mortgage after passing.

When choosing the best term life insurance coverage, it's better to obtain the plan when in great health at a younger age for more affordable rates. Most people choose to have coverage that is five to 10 times of their annual income to prevent a financial crises if an accident occurs. Although term life insurance offers extremely low rates, it's still crucial to shop around at SelectQuote and other online resources to ensure an ideal plan is chosen.