Many people worry about their loved ones when they pass away. They want to make sure that they are financially protected and stable when they are gone. Life insurance policies are a great way to make sure that your family will be protected. There are different types of life insurance policies: whole and term. Term policies are more affordable, but they typically have a time limit. This can leave your family unprotected. Read on to learn more.
Term Life Insurance
Life insurance is a way to guarantee that your loved ones are protected when you are gone. These policies are typically large, starting at $50,000 and increasing. This means that your family will get that amount, called the death benefit, upon your passing. Life insurance policies can be pricey. One way to decrease the expense is by getting a term life insurance policy.
A term life insurance policy is when a company sells you a policy that will only pay your beneficiaries if you pass away within a certain number of years, referred to as the term. A typical term is 25 years, but it depends on your specific policy. If you do not pass away in that time, your loved ones will not receive that death benefit.
Advantages and Disadvantages of Term Limits
The benefits of these policies are that they are generally more affordable than plans that do not have a term limit. The disadvantage of this type of policy is that your loved ones will not receive any money if you do not pass away within the time frame of the term. All of the money that you had paid into the policy will have been for nothing and your family will not benefit financially.
How to Convert from Life Insurance to Burial Insurance
Obviously, you may want to convert a term life insurance policy. Many term policies allow you to convert to burial insurance. Converting from a term life insurance is relatively simple: