Good life insurance doesn’t have to be expensive. There are options that are far more accessible than you would think and can be adjusted to your needs.
We know that the decision to purchase life insurance can be somewhat confusing and complicated. You may think the language is difficult to understand or that the premium (the amount you pay every month) will be pretty high. But you should know that, when it comes to life insurance, there are options for every situation. Due to its nature, a Term Life Insurance is the most affordable and accessible option. How can you know if a term life insurance is a feasible and convenient option for you? We will help you find out.
As its name suggests, a Term Life Insurance lets you select the benefit amount you wantthe beneficiaries to receive and the number of years you wish to be protected (for example, $500,000 for 30 years). The premiums for this type of insurance are low, compared to the ones of whole life insurances.
Term life insurances may be very convenient and affordable in certain scenarios. For example, if you are a young parent with small children, you could acquire a policy that will cover you for enough years, until your children become professional adults capable of providing for themselves. In a case like this, if you die during the term of the policy, your chosen beneficiaries will receive their corresponding benefits directly.
Another example of a common use for Term Life Insurances is in situations where you have significant debt for a specific term, such as a mortgage loan. In such a case, you could acquire an insurance policy that will cover you for the necessary period of time until you pay off your debt. That way, if you were to die before the end of the debt’s term, the insurance could be used to cover said debt.
After your insurance term expires, you will usually have several options on how to proceed. Firstly, you could renew it for a longer period of time. For example, the Triple-S Vida Term Life Insurance guarantees this renewal option for you until you turn 95 years old, regardless of your health condition. You also have the option to turn your Term Life Insurance into a Universal Life Insurance, if you understand this is better for you at your current life stage (learn more about our Universal Life Insurance here). You could also decide not to renew your insurance.
At Triple-S Vida, we have various Term Life Insurance options designed to fit different situations and needs:
Level TermThis is the most basic option, where you can choose a coverage amount and a specific term, be it 1, 10, 15, 20, or 30 years. In this type of insurance, the amount of coverage and the premiums will remain the same throughout the term of insurance.
5-Year Renewable Level TermThis option gives you the flexibility to renew your insurance every 5 years. During the term of coverage, the insured amount and premiums will remain the same. It also gives you the option to turn it into a permanent insurance when your renewal is due.
Decreasing TermThe terms available for this insurance are 10, 15, 20, 25, or 30 years. Its distinction is that the insurance amount is greater during its first years and then gradually decreases. The premiums remain the same during the term of coverage. This type of insurance is particularly useful and cost-effective. For example, it can help if you have to finance a property or to protect the balance of any other significant debt. Its rationale is based on the fact that, as your loan principal decreases over time, the amount needed to insure it will also decrease.
Another feature of Triple-S Vida’s Term Life Insurance is that you can usually add different supplements to better adapt it to your plans, your needs, and other life circumstances. You may supplement some insurance policies with additional protections in case of disability or accidental death, and even in case of a cancer diagnosis or a heart disease. You also have options to receive a 100% reimbursement of the premiums paid upon reaching the contract term. This allows you to have access to a monetary amount that you may use for whatever you want.
The cost of Term Life Insurance premiums may vary based on several factors, including your age and health condition. However, as a rule of thumb, they are more affordable than permanent life insurance premiums.
At Triple-S Vida, we have a tool to help you calculate the amount you need for your coverage, considering factors such as your debts, your family income, and the estimated cost of paying for college. Each situation is unique, but this tool will help you better determine the coverage you need, based on your life plans.