What is the most popular life insurance policy?
Finding the right type of life insurance coverage can be complicated, yet the most popular life insurance policy currently available in the USA, is far from that.
Term life insurance, the most popular life insurance policy
Term life insurance is easily the most popular life insurance policy. It provides simple, value for money life insurance coverage, which delivers exactly what it promises to do.
With term life insurance, you choose the “term” or duration of coverage that you would like. In most cases this is around 20 – 30 years. Some policies even offer an annually renewable term option. The key to this policy is that it provides life insurance coverage for a limited time only.
At the end of the insured term the policy will either expire if you are still living, or, it will have already paid out a death benefit to your beneficiaries if you have died. There is no payment due if you have outlived the policy term. At this point, if you want to extend the term, then a new term can be agreed or you can simply allow the policy to lapse.
Term life insurance, the biggest bang for your buck
Term life insurance provides excellent value coverage and is particularly popular for those who are on a fixed budget, or have a certain amount of cash available to spend on life insurance coverage. The premiums are guaranteed for the term, as is the death benefit, which means that once you have set up the policy there are no hidden extras. As long as you continue to pay the premium each month, then the policy will pay out in the event of your death.
Due to its nature, term life insurance is not generally used to settle estate matters after your death. Usually it is taken out to provide a source of income to your beneficiaries should you die during the term. Other common uses are funeral expenses and outstanding debts.
There are still a vast number of us in the USA who do not have appropriate life insurance coverage. If you are driven by cost and financial circumstances, it is definitely worth considering term life insurance as an affordable and straightforward option.