A term life insurance policy is a type of life insurance that offers coverage for a specific period of time or number of years. If the policyholder dies while the policy is active, the insurer will pay out a death benefit. If the term expires and the policyholder dies after the expiry of the policy, there will be no coverage or payout.
However, if the plan expires, the holder can choose to renew their coverage. Some term policies provide the option to convert from term life to permanent insurance. So, what benefit can women gain from purchasing this type of insurance?
Why Women Should Go for Term Life Insurance
In today’s world, women are actively involved in various fields. The increasing cost of living has required men and women in most households to earn income. The loss of one source of income in a household can affect the financial balance. Also, in single-parent households, women may be the only financial provider. Due to this, it is important to get a life insurance policy to serve as a financial protection in case of unfortunate incidents.
Term life insurance policies are amongst the cheapest life insurance plans. The policyholder only needs to pay a fixed premium amount that is assigned. Even if you are married and your husband has a term life policy, your income contribution might be significant to the total income. If your income is lost, then it could affect the financial balance in the home. A term life insurance plan helps take care of certain responsibilities in case of the policyholder’s demise.
Many insurance companies offer term life insurance plans to women with extra benefits such as special premium rates for women, non-smoker premium benefits, and comprehensive coverage with an option to choose a critical illness rider.
Women with dependents can greatly benefit from purchasing a term life insurance plan, as it can help to build a financial foundation and reduce the effects of a potential loss of income.
Term life insurance plans can allow you to include a critical illness cover so that if you are diagnosed with a critical illness such as cancer, you can claim it to serve as a cover against treatment costs or hospitalization expenses. If you have children, a term life policy can help ensure your children’s financial safety in case of any eventuality. The death benefit can be used for college funds, upkeep, feeding, and other expenses.
Types of Term Life Insurance
Term life insurance plans come in various forms.
- Level term plans provide coverage for a specific period with a fixed death benefit and premiums.
- Yearly renewable term plans do not have a specified term; the holder can renew their coverage each year or after every term.
- Increasing term plans allow you to increase the death benefit with time, though the premiums will increase as well.
Before you purchase a term plan, ensure you go through the coverage options and other necessary information. For more information and help, contact us at Randy Jones Insurance Services. We have professional agents who are ready to help manage your personal insurance needs.
