zTermLifeInsurance Blog
Tuesday, September 07, 2010
- 06
May
2010 -
Term Insurance: Then and Now
Filed Under: Blogging
Traditionally, insurance—whole life insurance more than term life insurance—was sold as part of a savings package that could be used for retirement as a tax-free component. While life insurance seemed to make sense in that case, life insurance became part of the insurance culture.
Now, with the arrival of term life insurance as a force to reckon with, companies are facing basic questions about the rationale behind life insurance. Most commonly, questions are related to why term life insurance, if savings are in place with the appropriate beneficiaries listed in the savings document.
Term life insurance was earlier typically used for those situations which called for huge sums of money for specific purposes—like the college fees of a child or mortgage of a home. Now, however, it is beginning to form a major component of the life insurance plan of a person regardless of the presence of extra expenses.
Those under 50 will especially benefit with appropriate term life insurance. Rates increase with age, and although 30-year term life insurance plans are also available, it might be best to carefully weigh options before going in for longer term insurance plans.
