Greatest Death Benefit for Lowest Premium Outlay…
Advantage No. 1.
Term insurance allows a person to acquire the greatest death benefit
For the lowest premium outlay when the policy is first issued.
However, this does not mean that term insurance is necessarily the least
expensive form of insurance over the full duration of needed coverage.
Because renewable term premiums increase at each renewal, at the later
Ages the premium cost will far exceed the level premium that would have
Been charged for an ordinary whole life policy issued at the same age as
The original term policy.
Advantage No. 2.
A Term Policy Is the Best Alternative for Temporary and Short Time Frame Needs.
Term insurance is the best alternative for temporary life insurance needs.
Usually term insurance is the best alternative if protection is needed for less
Than ten years. Conversely, some form of cash value life insurance will
Generally be the best alternative if protection must continue for 15 or more
Years. If the duration of the needed protection is between 10 and 15 years,
The best alternative depends upon the facts and circumstances of the case.
As a general rule of thumb, term insurance will tend to be better than cash
Value insurance (whole life) at issue ages below age 45, and worse at older
Issue ages if the length of the need for protection is between 10 and 15 years.
Advantage No. 3.
Younger Clients May Acquire More Coverage at Lower Immediate Cost.
Younger persons may acquire substantial face amounts of coverage at
Relatively low immediate cost, perhaps more than their immediate needs,
And thereby guarantee that they will have the necessary level of coverage
When their needs and family obligations increase in the future, even if this
Means they become un-insurable.
Advantage No. 4.
Conversion Features of Renewable or Convertible Policies Provide Higher
Future Death Protection.
The conversion feature of renewable and convertible term policies allows
Those covered to enjoy higher death protection than they could otherwise
Afford and later allows them to lock-in their premiums and build cash values
when their ability to pay premiums increases.
Advantage No. 5.
Term Policies Can Be Combined to Serve the Specialized Needs of
Individual Policyholders.
Various types of term insurance… level, decreasing, and increasing… can
Be combined as riders with other types of permanent insurance to create a
package that meets a person’s special death protection, savings, and
affordability needs.
Advantage No. 6.
Proceeds Can Be Paid to the Beneficiary Without Delay.
Life insurance proceeds are not part of the probate estate, unless the estate
Is named as the beneficiary of the policy. Therefore, the proceeds can be
Paid to the beneficiary without any delay caused by administration of the
Estate. (Provided the policy is past the 2 year period of contest-ability and the
Beneficiary is current (living and the insurance company has a current phone
number and address).
Advantage No. 7.
Preserves Confidentiality.
There is no public record of the death benefit amount or to whom the death
benefit is payable (if paid to someone other than the deceased’s estate).
This helps to preserve confidentiality for the beneficiary of the policy.
Advantage No. 8.
Beneficiary Proceeds Are Not Subject to Federal Income Taxes.
The death benefit proceeds are generally not subject to federal income taxes
And are not counted as taxable income.
Advantage No. 9.
Death Benefit Proceeds Are Exempt From Estate Taxes in Certain Situations.
In cases where the beneficiary is a surviving spouse, the money is exempt
From estate tax. This scenario can help the widow or widower and keep them
from having to shell out large sums of the proceeds to the federal government.
Advantage No. 10.
Policies Can Be Used as Collateral for Loans.
Life insurance policies can be used as collateral or security for personal loans.
Although lenders generally prefer permanent types of policies because of the
cash values, a term policy is often sufficient if the borrower is a good credit risk
and the loan is very likely to be repaid unless he or she dies.
- Stephan R. Leimberg, Robert J. Doyle, Jr., Keith A. Buck
https://www.thinkadvisor.com/2016/07/17/10-advantages-of-term-life-insurance/
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
Need Term Life Insurance?
https://www.helloplum.com/agent/childs-806
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