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10 year term life insurance quote
1. Buy 10 Year Term Life Insurance Instead of Mortgage Insurance
If you just bought a home, you know that lenders require you to purchase insurance to cover the mortgage.
Many lenders sell mortgage insurance to their clients.
It sounds like a great idea right? If something happens to you, your mortgage obligations won't weigh your family down.
Unfortunately, it's not as simple as that. Mortgage insurance is a decreasing form of term life insurance.
10 year term life insurance flexibility
The coverage corresponds to the amount you owe.
As your mortgage is paid down, your coverage is decreased accordingly.
...and that's not all. Often the bank is the beneficiary, not your family.
Hmmm, this is looking a lot more like protection for the lender than for you. If that's what you're thinking, you'd be right!
Mortgage insurance is also more expensive than term life insurance, and the underwriting occurs post claim.
Which means that there is a possibility that you aren't covered at all! If they find out that you had a health condition that wasn't disclosed when you got the policy (whether you knew about it or not) your claim could be denied.
So why the heck would you choose it!??
My advice is DON'T!
Why not opt for 10 year term life insurance?
This decision hinges on the length of your mortgage and personal circumstances. If you have a lot of money down on your house, this may be just the option you've been looking for.
If however, you have a 20-30 year mortgage, I would suggest going for a longer term. You could also layer life insurance policies to keep yourself from being over insured at the end of your mortgage.
2. 10 Year Term Life Insurance When You Can't Afford Anything More
10 year Term Life Insurance is very popular - probably because it's VERY affordable.
A lot of my clients are worried about how they are going to fit life insurance into their financial planning.
If you have a lot of obligations, there may not be a ton of wiggle room in your budget for life insurance.
To be frank, that's EXACTLY when you need life insurance. If things are that tight, your family is close to the edge.
Should your income suddenly cease to exist what would happen to them?
10 Year Term Life Insurance Affordable
10 years of life insurance coverage is better than nothing, and once you have a policy, there are more options when the term expires.
3. 10 Year Term Life Insurance May Be Appealing When You're Older
I sell a lot of 10 year term life insurance policies to people who are close to retirement.
For example, I have one client who is putting her daughter and son through graduate school.
Her daughter was lucky enough to be admitted to an ivy league university, and her son is attending culinary school in California.
She and her husband are responsible for their educational loans.
They're concerned about something unforeseen happening so they purchased a 10 year term and made their son and daughter beneficiaries to cover any outstanding obligations that would be left behind. JUST IN CASE.
10 Year Term Life Insurance University
This is a true gift! If you have a short term obligation that needs coverage, 10 year term life insurance is the way to go.
4. 10 Year Term Life Insurance to Cover Business or Other Short Term Loans
Businesses need to be financed. Quite often liquidity comes in the form of a loan.
If you borrow money for buildings, merchandise, equipment, etc. you should consider covering the period of the loan with life insurance.
To be honest, most lenders require insurance to protect their interest anyway as it's a great way for them to guarantee the money will be repaid.
5. To Supplement Your Current Life Insurance
What if you planned ahead and have 30 year term insurance in place? But now that you've re-crunched your numbers, years later, that 250K policy you took out to cover your debts and mortgage is looking pretty weak.
....in a nutshell, things have changed. You started a new business and moved into a fab new beach house.
It's been a while since you looked at that dusty old term policy - but now that you have, you realize that you're VERY underinsured.
Ugh now what!?
10 year term life insurance supplement
I would tell this client to get real and sit down to figure out what their obligations are and how long they need the coverage.
For a lot of people, they only need a short term boost, and this is where 10 year term life insurance comes to the rescue.
It can add the the coverage you need for 10 years and will fall away when you obligations lighten. That way you won't be over insured.
Read more : insuranceblogbychris.com