Getting a suitable life insurance plan is an essential investment to make for everyone. People usually feel intimidated when they choose between different kinds of life insurance plans. This can be especially confusing if you are new to investing in life insurance policies. William Schantz says that term life insurance plans are the best choice if you are on a tight budget and need good coverage.
One thing that sets term life insurance apart from whole/universal insurance plans is the cost of the premiums and the duration of the plan. People can also get their term life insurance customized for what and how much coverage they seek from the plan.
If you are still skeptical about whether to invest in term life insurance plans or not, here are some compelling reasons by Schantz to motivate you!
3 Reasons by Schantz to Invest in a Term Life Insurance Policy
Here are a few of the reasons given by Schantz explaining why term life insurance is the best plan to buy:
“They Are Affordable & Flexible” – Schantz
The rates and premium costs for term life insurance are the lowest. One important factor behind this is that term life insurance offers coverage for a predetermined period of time. People get to choose how long they want their insurance coverage to last.
When people outlive the term in their term insurance plans, the coverage expires and the beneficiaries do not get anything. These terms are renewable and you can always get a new predetermined period for your plan.
“They Are Uncomplicated & Simple” – Schantz
According to William Schantz, the best thing about a term life insurance plan is that is very easy to understand. You can easily compare between two policies and see which rates or quotes would suit your budget better. There are three essential questions that you need answers to:
How much coverage do you need from your plan?
What would be the duration/time period for your plan?
Which service provider works the best for you?
Most people think that a term life insurance plan is the best fit for them as they can easily understand its terms and conditions.
They Are Convertible to Whole Life Plans
While a term life insurance plan provides temporary coverage for a certain period of time, you can always upgrade. Once the policy-holder thinks that they are set to invest in a long-term or permanent insurance plan, they can renew their policies. Most of the term life insurance plans are convertible to whole life insurance, depending on the service provider’s policies. This is another factor that makes term life insurance a suitable option as you can always convert/upgrade them.
They Are Suitable for Young People
If we consider the unpredictability of life, one can never be too young to invest in a life insurance policy. If you have just started a family or are still a student looking for temporary coverage, opt for a term life insurance plan. They are less expensive and provide great coverage for the time period that your family is dependent on you, explains Schantz. Later on, you can always lower the coverage and save money once your kids grow up or you do not have to provide for them.
In a Nutshell
A term life insurance policy is the best way to go about investing in life insurance for the first time. They are affordable and have very flexible payment schedules for people to manage comfortably. Moreover, a term life plan is also very easy to understand and has simpler terms and conditions, says William Schantz.
It is best suited for young families and people who want to get permanent life insurance but cannot afford it right away.
