Although 15-Year Term Life Insurance does not provide coverage for your whole life, it is convenient for those who need a solution to bear its premium with various expenses.
Term Life Insurance is a popular product among insurance clients because it is more affordable than whole life term insurance.
How Is A 15-Year Term Different From Other Plans?
A 15-Year Term Insurance Policy is the best option for those who need a solution for coverage cost-effectively. It is the best alternative of whole life insurance. If someone does not want to pay a high price in terms of insurance until permanent insurance is more appropriate.
Moreover, since most term policies give facility of conversion; the policyholder can convert all or some of the term coverage to permanent coverage.
For instance, if a person buys a 15-Year Policy at the age of 45; so he/she can convert it into a permanent policy plan when he/she reaches 60.
And many insurance providers will offer premium credit for the permanent policy, which helps the policyholder convert it.
Is 15-Year Term Beneficial For You or Not?
The policyholder of a 15-Year Term Policy has to pay premiums to the insurance provider to continue the policy service.
If the insured expires during the policy term, the beneficiary mentioned on the policy will get a lump-sum payment death benefit.
When the 15-Year Term is about to end, the insured can convert it into a permanent policy or opt for another term policy suitable to him/her.
Positive Points for 15-Year Term Policy Plan
There are some significant benefits of owning a 15-Year Term policy beyond the reasonable premiums that most applicants can qualify for and use.
Considerable Death Benefit
As the insurance provider only charges for the cost of a policy plan and an annual policy fee; the client can buy a more considerable death benefit that can easily tackle financial risks that might come.
Most insurance providers give a mixture of riders that enable the client to widen their insurance coverage and offer living benefits.
Coverage for Certain Debts
15-Year Term Policies are among the best possible strategies for insuring certain debts. Such as a mortgage, auto loan, or any other expensive thing that needs a financial loan.
Almost every other insurance provider offers the facility to convert your term insurance policy into a permanent policy plan. Due to this option, many policyholders take advantage of it and save a considerable amount before 60.
Who Should Think About A 15-Year Term Plan?
Although a 15-Year Term Policy is suitable for just about anyone, there are some specific circumstances when a 15-Year Term Plan makes the most reasonable sense.
Beginning a New Job
A 15-Year Term Plan is suitable for those who have started a new job, and he/she cannot afford a significant amount of permanent policy plan fees and premium. Also, a 15-Year Term Policy Plan acts as a bridge to take coverage benefits till 60 without purchasing a permanent policy plan.
Safety Plan for Off-Springs
For many families, bearing the education expenses of young ones is not accessible if their breadwinner could die unexpectedly. Here a 15-Year Term Plan acts as a safety net in these circumstances; policy could significantly reduce those concerns. Knowing that if the worst thing occurs and through this, the young ones will not suffer in getting an education.
Safety Exit Plan from Mortgage
For families whose mortgage is 15-Year or less, a 15-Year Term Life Insurance Policy is a cost-effective strategy to cope with the situation if the breadwinner dies before paying all the debt.