Choosing a 15 Year Term Policy
Term life insurance is just your basic “crash the car” coverage. As the name suggests, it provides coverage for an agreed-upon period of time. And then, the policy ends.
In case the insured party has a life-threatening illness or is involved in an accident, a term life insurance policy can help pay for funeral costs and to protect the remaining family from financial hardship.
However, some policies are available in a renewable term, which means that after the term runs out, your policy does not expire. You will have to pay premiums for as long as you want to keep the policy in force.
A non-renewable term is just the most popular type and lasts for a given period of time. After that, the policy expires and there’s no way to reinstate it.
Moreover, policies can be purchased for terms that range from a small period, such as 10 years, to a long period of 25 years. The length of the term is an important factor to keep in mind because the premiums you will have to pay will be considerably higher for a 15-year policy than for a 5-year one.
20 Year Vs. 15 Year Term Life Policy
So what’s the difference between a 15 year term life insurance policy and a 20 year term life insurance policy?
What Term Policy is Best For You?
Term insurance is a form of life insurance that does not build a cash value. It is long term policy with a high premium rate and low coverage to make sure the family gets compensated in case of death.
Term insurance is the most popular and simplest form of life insurance. They are a relatively cheap insurance policy that protects your family if you die during the term of your policy. Term policies are available in terms ranging from 1 to 30 years or more.
The Importance of Life Insurance
When you purchase life insurance, you are basically purchasing a contract with an insurance company to pay someone money in the event of your death. Life Insurance, sometimes referred to as permanent life insurance, is not the same as term life insurance.
With term life insurance, you are only paying for insurance for a specific amount of time or term. If you are paying for a Life Insurance Policy for 10 years, the holder of that policy and the beneficiary will receive the payout if that person dies within the first 10 years of the policy. If you live past the 10 year term, it will not pay out. However, if you die at any time during the 10 year term, the beneficiary will receive the payout.
By default, Life Insurance is used as a tool to provide a tax-free death benefit to one’s favorite beneficiaries, but it can be used for other important things as well, such as illness or to put one’s affairs in order.