What to Expect with Term Life Insurance

Term life insurance is becoming an increasingly popular option for individuals, especially those with homes.

While whole life generates cash value and locks an individual into set premiums, term life continues to be on the rise, especially in the wake of a struggling economy. With the increased popularity of term insurance, companies are tailoring policies to clients to better meet their needs.

For example, some clients are buying mortgage life insurance which covers the outstanding debt on an individual’s residence. Term policies can also target education for a child or other items. Whatever you want to make sure is handled when you pass can be handled through a term policy. The customizing of term policies continues to grow in popularity.

Although term life policies expire after a set time and provide the policy holder with no benefits once they expire, term life continues to be an attractive option for many people. That attraction is generated by the generally low cost of the policies. Realizing that life expectancies continue to extend, many insurance companies are offering riders that return paid term premiums should the policy holder outlive the term policy’s expiration date.

Education riders are another new area in term policies. With an education rider, an individual can designate that the schooling of a family member be covered through death benefit payments for a certain time, normally four years. Another rider being used with term policies is for professional retraining should a disability occur in the policy holder’s family.