What You Should Know about Florida Term Life Insurance

Everyone knows what life insurance is: it is a policy designed to help pay for your funeral and other final expenses as well as care for loved ones after your death. There are several types of life insurance from which to choose, but Florida term life insurance is often the most popular choice because it is the most affordable.

Understanding the Basics

Florida term life insurance is incredibly straightforward and simple to understand. Generally, those who purchase it pay monthly, bi-monthly, semi-annual or annual premiums to protect themselves and their families for that term. Most of the time, purchasers select a term length before purchasing their policies. The most common term lengths are 10, 20 and 30 years but there are other choices available. Since the benefits are only guaranteed during this term, the premiums are usually less expensive than those associated with whole life insurance policies.

When Term Life Insurance is a Good Idea

People who are deciding between insurance policy types may want to lean toward Florida term life insurance for several reasons. First of all, it is affordable and will help provide for a family’s needs—and even replace your income—in the event of your death. You can add it to a whole life insurance policy during the time that you are raising children so that you can enjoy additional peace of mind and coverage for their needs. When used carefully, and when certain types of plans are selected, these policies can even provide longer term protection for paying off a mortgage or even a college education.

Types of Term Life Insurance Policies

There are several types of policies inside the Florida term life insurance category. Select term life insurance is the most popular; it allows you to choose the length of your term. Although your insurance premium cost may go up after the term ends, as long as you pay on time, you can often maintain guaranteed coverage afterward. Return-of-Premium policies are a bit more expensive, but they will allow you to get everything you’ve paid in premiums back at the end of the term if you outlive it. Some of these policies are guaranteed until the age of 95. Finally, there are policies designed only to help pay off mortgages and college tuitions in the event of your untimely death.

Disadvantages of Term Life Insurance

While it is obvious that there are plenty of reasons to consider Florida term life insurance, there are also some disadvantages of which you should be aware. The premiums are generally affordable during the term, but once your term expires, you could find yourself paying quite a bit. If you miss a payment, your insurance carrier has the right to reject your policy—even if there are still years left on your term. Finally, there are often times when term life insurance policies expire and individuals have a difficult time finding a new policy that is anywhere near as affordable.

If you have questions about the benefits and downfalls of Florida term life insurance, you should speak with your insurance agent about your situation. Term life insurance isn’t right for everyone, but it may be right for you and your family.