Millions of Americans have no life insurance. The number of people without health insurance is estimated at 47 million and rising and these same people cannot afford life insurance. Some have lost their jobs while others work for employers who find it too expensive to provide group insurance. Insurance companies have noted this and introduced term life insurance as a business opportunity that also provides a low cost insurance options for many consumers.
What is Term Life Insurance?
The first things you will notice when searching for Lincoln term life insurance quotes are:
- You can buy policies that last anywhere from one year to thirty years but they will expire at the end of that term. This is a term bound policy and will not cover you for your entire life.
- Compared to whole life insurance, term policies are much less expensive. They will not build cash value, however, nor qualify for any dividends.
Who needs Term Life Insurance Quotes?
Lincoln term life insurance appeals to many different circumstances. For those changing jobs term policies are used to cover the gap between losing group coverage from the old employer and being added to coverage by a new company. Many employers have a time delay of 60-90 days before new workers receive their benefits package and term policies protect you during this time as well.
Many of us simply cannot afford more expensive insurance and term life insurance offers a reasonably priced alternative. Some may use term policies only until they can afford to change to a whole life or permanent insurance option while others may stay with term life insurance for the long term. Term life is a great option for college students who are no longer covered under the insurance their parents carry and can continue to protect young adults as they relocate to start a new job after graduation.
More Reasons to Purchase Term Life Insurance
Savvy investors buy term life rather than whole life insurance as a business strategy. Buying lower cost term policies allows them to invest the difference in stock and bonds where returns can be much higher than the cash value of whole life insurance.
Disadvantages of Term Life Insurance
Term life is not easily renewed. This is perhaps the biggest drawback of such policies as most companies do not allow renewal at all. The few companies who do offer renewals will charge significantly higher premiums. They may also require medical tests repeated and if a health problem has developed since the policy was originated the premiums may rise even higher for a renewal.
Term life policies are best used for a single term so it’s wise to choose a term longer than you think you might need.
Do You Need a Life Insurance Policy?
For a single person with no dependents, buying life insurance may not seem necessary. However, a Lincoln term life policy can benefit other members of your family and protect them in the event of your death. We don’t like to consider t costs of a funeral or burial but those costs can be significant and be a burden on your family. The death benefit of a term life policy provides a solution to this potential problem.
Those with families to support will view life insurance as a necessity to provide for their family financially as mortgage payments and other monthly bill are still due even if the breadwinner is gone.
When Should You Buy Life Insurance?
For many people the first life insurance they have is that provided by their employer. For young two income couples life insurance may be considered when they are expecting their first child.
There is no better time to look into acquiring a life insurance policy than now. By getting quotes and looking for the best deals you’ll be prepared when you are ready to purchase a policy.
See how easy it is to shop online for life insurance. Get your free Lincoln life insurance quotes today!
