Life insurance is something every human being needs. From infants to adults, this is an insurance product that you do not want to lack. When the time comes to need term life insurance, it will be too late to go back and obtain it.
If permanent life insurance is not within your budget such as whole or universal life policies, then term life insurance is another affordable solution.
Life insurance is different from some other insurance policy products in that it doesn’t cover specific situations. A policyholder will select the amount of life insurance they desire for when they pass. From there the beneficiary receives the full payout in the manner in which they choose.
Once the beneficiary receives the funds, it is their responsibility to do what they deem with the finances. Your beneficiary should be a person you trust, knowing they will use the finances to pay for things like funeral expenses, medical bills, or setting up a trust for any young children.
Having life insurance is the first step — the type of life policy you select is dependent on your budget and coverages needed. If your situation demands a larger benefit but your budget is firm, then term life insurance may be the right option for you.
It is best to meet with your independent insurance agent and discuss the unpaid debts and expenses that you may have and for how long you will have them. This, along with your budget and coverage amount, will determine which life insurance policy will be most beneficial for your situation.
Add a new term to your policy that will give you the same benefit amount. This option will take into account your new age, and your rates will be much higher.
This option allows you to transition your term life policy into a permanent policy with the same benefit that will last as long as you are alive. Again, premiums would be much higher and the cost may or may not make sense. It is best to discuss this with your independent insurance agent.
A term life insurance policy is meant to only last a certain period of time assuming that you will no longer need the death benefit due to having saved your funds in preparation once it expires. In this case, you can terminate your policy and purchase a new type of insurance or a new benefit limit that fits your needs.