Benefits of 30-year Term Life Insurance vs. Whole Life
If you are in the market for life insurance, then your two main choices in terms of plan types are term life insurance and whole life insurance. Each plan type has its own benefits and you will need to consider your financial goals and needs when determining the plan type you want to go with.
Three Basic Benefits of Term Life Insurance
When looking for a term life insurance the three main benefits you will gain include:
- Maximum death benefit – Because these plans strictly cover you in the case of death and do not have an investment component to them the death benefit tends to be very high.
- Tax advantages – The death benefit is tax-free provided a huge boost for your beneficiaries.
- Low Monthly Cost – As these plans only cover a death benefit and have no savings component you are only paying for this death benefit. This keeps your cost low compared to what you would pay for whole life insurance.
Primary Advantage of Term Life Insurance
The primary benefit most people gain from a 30-year term life insurance policy is high death benefit. If you still have young children and are still paying off a mortgage, then you are at a point in life where your family will need the biggest death benefit possible in order to get by. Term life insurance policies will allow you to get an extremely large death benefit while paying a fairly low premium in comparison to what you would be paying using some other plan.
Taking out a term life insurance at this stage in your life is typically much lower in cost than when you're older, because premiums are heavily influenced by age and health. Since the insurance company faces minimal risk of having to make a payout to you at this stage in your life, they are willing to offer very high death benefits relative to the premiums you will need to pay. If you request a quote through this site, our experts will be in touch to discuss your life insurance needs.