Advantages and disadvantages of a term policy can be found in term insurance policies. Even though they are the most affordable. Let’s take a look.
Advantages and disadvantages of a term policy will be covered but let’s start with the main advantages. You can click here at any time you wish to have a free no obligation quote.
What are the main advantages of a term insurance policy?
- Compared to a permanent life insurance policy, such as whole life or universal life insurance policy, a term insurance policy has much lower premiums.
- Premiums will remain the same for the entire term of the policy for as long as the policy is in force.
- Some term life policies have the option to be converted to permanent life insurance policies. There may even be cases where no medical exam is required. Speak to one of our friendly life insurance advisors for more details. An advisor can let you know the requirements for converting life insurance policies.
- Some term life insurance policies may have the option to renew. This should be discussed with an agent for further details and requirements.
What are the main disadvantages of a term insurance policy?
- Well, if you are looking for an investment portion to your term life insurance policy there is none. You would have to consider a permanent life insurance policy such as universal life insurance. This has an investment portion in your premiums.
- Unfortunately if the term insurance policy is purchased when you are much older, then the premiums will be much higher. The older you get the higher the premiums will be.
- In some cases your term life insurance policy will allow you to convert to a permanent insurance policy. If you are converting the policy when you are much older, expect it to be more expensive.
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