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Top 5 Benefits of Term Insurance

We devote so much of our time to different activities like career growth, health preservation, and growing a family, etc., that we often tend to forget about our financial security. In such a situation, a term life insurance policy is a must-have for anyone who wants to protect their family from a financial crisis.

For those who don’t know, term insurance is an insurance policy that gives a lump sum payment upon the death of the insured and is not the same as permanent life insurance. The specific term of the policy will vary and be dependent on how much coverage you opt for, but most policies have a time limit that runs according to your age at the claim.

To read more about the details of time frames for term life insurance plans, keep reading:

What Are Term Insurance Plans and Who Needs Them?

An old couple reading documents

Term insurance is an investment product that is designed to cover you against the risk of your life ending prematurely. Term insurance is often used by older people concerned about their longevity and who want to be prepared for the worst-case scenario. As such, it makes sense for them to purchase these types of policies as they will ensure that their loved ones will be provided for in case something happens to them before their time comes.

There’s no denying the fact that term insurance policy has many benefits. It allows you to enjoy peace of mind and secure your investment which can help save your family from financial hardships after your death.

Taking the time to read these benefits won’t take away from your loved ones but will improve the quality of their lives! So, here’s all you need to know:

1. Protection Against Life-Changing Events

Term insurance services can be used to help you pay for unexpected medical expenses if you lose your job or become disabled. Since the cost of paying for such events is very high and it can be hard to come up with the money, even if you have a comfortable budget. Term insurance provides a lump sum payment if you die or become disabled before your term ends. This ensures that your family will not have to worry about their financial future because you were unable to provide for them due to your death or disability.

2. Security In Case Of Long-Term Terminal Illness Or Accidental Death

The last thing you want while working for an established firm is to be declared disabled, sick, and unable to work. This means that your family depends on you for support, and they will most likely be left in the lurch when you go on long-term sick leave or are unable to continue working due to an accident.

With term life insurance services, your family will still receive benefits even after you suffer from long-term critical or terminal illness or accidental death. Remember that many types of term life insurance policies are available today with varying payout options, so it is important to choose wisely before making any purchase decisions.

3. Investment Options Available Under A Term Plan

If you experience an emergency or illness while you’re insured under a term policy, it will cover hospitalization expenses until the policy ends or until you become fully recovered (whichever comes first). You’ll also receive up to 90% reimbursement for medical expenses if they exceed policy limits within 10 days after diagnosis or treatment begins.

an insurance agent explaining documents

4. Tax Benefits Available On Low Premiums Paid Towards Term Plans

Since term insurance plans offer tax benefits on premiums paid during the policy period, it becomes beneficial for people who wish to save on taxes by opting for this type of coverage plan over other types of coverage plans like permanent life plans, long-term coverage plans, etc.

5. Various Payout Options As Death-Benefit

With a term insurance policy, you have the option of having multiple death benefit payout options. This means that when one person dies, their beneficiaries can choose to receive their money through either an immediate or deferred payout option.

The benefits of receiving an immediate payout are obvious―you get your cash as soon as possible, and there’s no waiting period for the payout. However, if you opt for a deferred payout, your beneficiaries will be given time to invest the money to get a higher rate of return.

an insurance agent talking to a man

Some common multiple-death benefit payout options are as follows:

  • 50% of the face amount for term insurance;
  • Five times the face amount for permanent insurance;
  • Ten times the face amount for permanent insurance with a maximum payout of $100,000;
  • Permanent coverage with a guaranteed payout equal to five times the face amount up to $500,000 (terms only)

So, if you’re looking for an experienced insurance agency in CA to get professional term-life insurance services and make a secure investment, feel free to reach out to Covered California Certified Agent today!

Our team of professionals is widely recognized to offer different types of health insurance plans, including but not limited to life insurance, employee insurance, dental insurance, and group insurance programs for you!

For further details, visit our website or reach out to us today by calling 800-771-7653.