1. Term life is straightforward.
It is easy to understand how the policy works and its reciprocal benefits. If a consumer needs life insurance for a specific period of time, term life insurance enables them to match the length of the term policy to the length of the need. Most commonly, people buy this policy to protect their families from financial hardship due to loss of income.
2. Term life is cost effective.
It is affordable and allows people to buy just the right amount of coverage they need for when they need it most. For example, single parents are often concerned about their children being able to afford college tuition in the event of their premature death, but term life can account for that.
Typically, premiums remain the same throughout the length of a term life policy. And, younger policyholders gain a greater amount of value for less cost. This means that for any younger consumers thinking about life insurance, term life makes sense to consider sooner rather than later.
3. Term life can be customized.
In an age of personalization and innovation, term life insurance can be structured to fit a consumer’s unique financial situation and requirements. This is particularly appealing to millennials, a generation accustomed to being able to tailor and customize everything from their social media feeds to their investment or savings products.
Term Life can be customized in several ways: value of the death benefit; term length; level or decreasing death benefit the life of the policy; whether the policy is renewable; and riders. With these important options available, it comforts consumers to know that term insurance can be more than a death benefit.
When the capabilities of life insurance are clearly described to consumers, many people may be surprised when they see what their dollars can do for them.