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Why Cheap Term Life Insurance in Ontario California?

Confronting your own mortality is never pleasant.

When we are young, single adults the idea of worrying about death seems morbid. Plus, since we are usually in good health at that age, it seems pointless to waste money on a monthly premium. But as we get older and assume more responsibilities, it’s necessary to start planning for the unexpected. Our decision is usually inspired by the birth of our children. The last thing anyone wants to do is leave their loved ones behind to face tough financial choices that could’ve been avoided. Life insurance is the most reliable way to safeguard your family’s financial future in the event of your untimely passing. The question isn’t whether or not you need life insurance but what type of life insurance policy you should buy.

The decision usually comes down to two main types of policies: term life or whole life. Term life provides coverage for a specific period of time. Whole life, or permanent insurance, can cover the entire life of the policyholder. Depending on your specific situation term life insurance might be the best bet; for instance, younger people tend to purchase term life insurance while older adults who no longer have children living at home and typically less debt are more apt to choose whole life insurance. There are exceptions to the rules. Term life may make sense for older adults who are unable to purchase a whole life policy or just need to cover their final expenses. A more affluent younger person may be interested in a whole life policy because of the cash value the policy accumulates, which may be borrowed against. Whether or not term life is the right choice is less dependent on your age than on your family and financial situation.

Most of the features that we will discuss here apply to guaranteed level term life policies since most people have this type of term life coverage. There are few different kinds of term life policies, each with unique selling points, that are worth looking at briefly:

  • Annual Renewable Term Life Insurance- This option locks the policyholder into a certain number of years of insurability, during which time a person may renew the policy on an annual basis without taking a medical exam each time.

  • Decreasing Term Life Insurance- The death benefit of this policy will gradually decrease over time. Someone who requires more coverage initially, perhaps due to the expense of having dependent children in the home or because they want their coverage to dovetail with their mortgage payment schedule which slowly declines over the years, may find this type of policy appealing.

  • Return of Premium Term Life Insurance- Provided they are still living when the coverage expires, holders of this type of policy will have their premiums refunded. In this sense, ROP offers some of the benefits of whole life since the policy does accumulate value.

These alternatives to traditional term life policies are designed to meet very specific needs. Make sure you clearly understand the benefits and drawbacks of these coverage options before you make a decision. Not all term life insurance is created equal.

Why do so many people choose term life insurance?

For one thing, it is usually cheaper. That’s because, unlike whole life insurance, the policy doesn’t accrue any cash value. Policies can be purchased for terms of anywhere from one to thirty years. Monthly premiums are typically quite affordable, depending on the age and health of the insured. If the policyholder is alive at the end of the term, the policy simply expires. Depending on the type of coverage and the company, the policyholder may have the option of renewing the policy, usually at a significantly higher premium. In some cases, you may be able to convert your policy to whole life coverage. This may enable you to keep the premium at its original level. Regardless of what you decide, it is important not to gamble with your families future by letting your coverage lapse.

Term life insurance is pretty straightforward. If you purchase a $150,000 10 year term life insurance policy, your beneficiaries receive $150,000, provided you pass away within the ten-year life of the policy. Simplicity is one of the main reasons term life insurance is so attractive. You simply calculate your family’s needs over a certain number of years and select the policy that pays out a sufficient death benefit. However, you should always consult with an agent to determine the right term length and policy amount for you and your family.

People with families need to take a few factors into consideration, including the age of minor dependents. Your coverage should reflect how many years you expect to be financially responsible for your children, whether that is until the age of eighteen or until they graduate from college. Make sure your policy is sufficient to meet your beneficiaries future needs. Experts recommend that your coverage equal ten times your current salary. There are a number of free tools online that will allow you to determine how much coverage is sufficient to meet your family’s needs.

The amount and length of any significant debts also need to be factored into your decision. If your family lives in a house with a 30-year mortgage, you’ll probably want to purchase a 30-year term life policy. When it comes to other financial obligations, such as credit card debt or loans, determining the correct term length of the policy may prove to be more challenging. Ideally, the number of years that your policy covers sound be concurrent to the amount of time you estimate that it will take you to pay off all of your major debt.

Term life can be an excellent option for young adults who are starting a family or older people who have difficulty getting insured or are unable to pay higher premiums. Some people will even combine term life and whole life policies to temporarily increase their coverage. There are several advantages to choosing term life insurance over whole life insurance, including lower premiums and the ability to choose the ideal term length for your situation. In the end, it all comes down to which policy type is the best for you and your family at this juncture in your life.