Posted on January 22, 2023.

When it comes to protecting your family and loved ones from financial hardship, life insurance is one of the best ways to do so. A robust life insurance policy can be the difference between your beneficiaries maintaining or even exceeding their current standard of living or having to make some drastic decisions. Considering that life insurance policies come in amounts ranging from tens of thousands to more than $1 million, there are plenty of options available on the market.

With that being said, it can take time to navigate the life insurance terrain. There are many types of life insurance policies to choose from; what may be beneficial for one person may not be appropriate for another.

The two most common types of life insurance - whole and term - vary significantly. Both have their own benefits and drawbacks to understand. Term life insurance, in particular, can be advantageous to have for some important reasons.

If you're in the market for life insurance then start by getting a free price quote so you know exactly what to expect.

Should you buy term life insurance?

While everyone's goals and personal finances are different, term life insurance is more broadly applicable. Here are three reasons why you should seriously consider buying a term policy:

It's inexpensive

Term life insurance is arguably best known for its cost - or its lack thereof. Because term life insurance policies expire after a certain term (thus the name), they're less expensive for the provider. That reduction in cost will be reflected in the premiums you'll pay.

Whole life insurance, meantime, lasts the duration of the policyholder's life. And it comes with a cash reserve that can potentially be accessed while the insured is still alive. Because of those two benefits, a whole life insurance policy will cost significantly more than a term one, all other factors being equal.

So, if you want the security a life insurance policy can offer, but don't want to break the bank to get it, you should consider pursuing a term life insurance plan. Start by getting a free price estimate so you know exactly what it costs.

It's simple to use

Financial products and services can be hard to understand. Fortunately, term life insurance policies and the providers who offer them are relatively straightforward.

As mentioned, whole life insurance provides a cash reserve that can be utilized while alive. But there is a process to access those funds and a time you'll have to wait to do so. And any amount you withdraw will be deducted from your ultimate payout (unless you pay it back).

Variable life insurance policies, meanwhile, allow you to invest your cash value in various securities and stocks, which allows you to grow your account and death benefits over time. But this can also become a headache to monitor, particularly in a volatile stock market.

Term life insurance is much easier to deal with. It will protect your beneficiaries in the event of your death and nothing more. You don't have to worry about cash, deductions or the stock market. You just pay the insurer to keep coverage for the pre-determined term and let it be.

In short: if you want a life insurance policy that you can set and forget then a term policy may be for you.

It has flexible terms

You may not need life insurance for the rest of your life or even for the next few decades. You may just want a policy until your children are grown. Or you may want coverage until college expenses are paid off or until your mortgage is. You may even want a plan for a short time period (say five years) at which point you could afford to let it expire.

Regardless of what time frame you need or want, term life insurance policies have flexible terms that can be molded to fit your needs. Whether that's for 20 years or 10 years or less, you shouldn't have much trouble finding a policy in the amount and duration that's right for you.

The bottom line

As mentioned, everyone has a different personal financial situation. And while many people would find whole life insurance policies advantageous, some others may not. If you're looking for a life insurance plan that won't cost too much, is simple to use and has flexible terms, then a term life insurance policy may be an option to seriously consider.

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