Finance and Law Insurance

Choose A Term Life Insurance Which You Can Afford

Life insurance is a requisite in today’s time. However, it is more important to have an affordable insurance. People sometimes take up policies just to make sure that their family gets the money after their death. They take up plans which have high premiums with a thought that higher the premium, higher will be the payback. Such insurance becomes a burden which he/she keeps dragging.

term life insurance

Finding Suitable Insurance Helps

Everybody has different requirements and expectations when they opt for a life insurance. The biggest mistake a person does while deciding a plan is that he does not calculate his expenses. Thus, it is advisable that you follow following steps to avoid making the wrong decision.

  • A person has some expenses which cannot be neglected and have to be paid every month. Calculate all the payments you need to make. This will include the smallest possible transaction so that you have a realistic figure with you.
  • One must always remember that life insurance is not a saving. Therefore, you must pay the premium after you save some money for the future and for emergencies.
  • Sometimes a person thinks that he/she will reduce his expenses in the future and thus takes up an expensive insurance plan. However, the reality is that if you get into false predictions and fail, you might get into problem. Therefore, aim high, but then be realistic. Move slowly and steadily.

However, premiums are not the only concern when you want to have an affordable insurance. You also need to consider the duration for which you wish to take the insurance. The insurance companies offer a range of policies with different timeframes but then it is you who need to know what you actually you expect of the insurance policy.

Types of Insurance Based on Duration

  • Decreasing term policy: This is believed to be the cheapest option you can go for. But it has certain conditions. According to this policy, a company is only liable to pay your debts to the bank or mortgage companies if you die during the term of the insurance. Here, your family will own the property which would have been sealed otherwise.
  • Increasing premium policy: This insurance is a yearly policy which can be renewed. However, it becomes expensive with time as the premium keeps increasing yearly. This is the best option if you are looking for insurance with short duration.
  • 5-year and 10-year insurance: These policies are valid and give a death benefit within the respective definite time period. These are a bit expensive than the options stated above, but then still the premiums are not very high if you study all available options and figure out the best one.
  • 20-year and 30-year Insurance: These are used mostly by business men. However, these are most expensive amongst available options though still affordable due to flexible plans.

With the right mix of duration and estimates, you can easily find the most affordable term life insurance which will help you protect the future of your family in case you are no longer there.