Are you about to purchase a life insurance policy? Are you confused about how much to buy, what type to buy and for what term? Wading through the quagmire of insurance jargon can be mind boggling. One option that you'll want to consider is 20 year term life insurance.
What is 20 year term life insurance?
Well, the answer is almost entirely within the question. The 20 year term life insurance guarantees the premiums during the 20 year term. They will neither go up or down. Some companies will begin with lower premiums but only guarantee the rate of premium for 5-10 years, after which they can go up. With the 20 year term you may pay more initially but your monthly premiums stay the same.
Are there any disadvantages to 20 year term life insurance?
This really depends on the purpose. If you are using this as an investment the answer is yes. There are no cash values and there are no dividends with this policy. The death benefit will also increase over time.
What is 20 year term life insurance best used for?
If you have a mortgage on your home, you can use the 20 year term life insurance policy to pay your remaining mortgage in the event of the death of the policy holder. If there is a balance remaining after your mortgage is paid then it will go to the selected beneficiary.
If you are a business owner, this type of policy is good for covering outstanding loans in the event of a partner's death. It can also protect the other business partner's interests in the company. Larger companies tend to use this to protect them against the death of a key employee. The death benefit is also tax free provided it is not a part of the deceased policy holder's estate.
Is there anyone else who should consider purchasing 20 year term life insurance?
Young people who are just getting started in life can benefit from these policies. It can protect spouses and loved ones from financial ruin should the policy holder die unexpectedly. Young married couples who are also contemplating having children can also benefit from these 20 year term life insurance policies.
Life insurance is a must in today's society. Our continued reliance on debt to gain the things that we desire makes us vulnerable to financial difficulty should we lose a spouse or partner. Why leave yourself open to the possibility of losing your home and other valued assets when term life insurance can make these problems disappear? 20 year term life insurances offers you stable and manageable monthly premiums as well as a host of other advantages such as mortgage and business protection plus the ability to clear outstanding loans. Why wait, look into 20 year term life insurance and give yourself peace of mind. Compare term life insurance quotes now.