Choosing between term life insurance and whole life insurance is a huge financial decision to make that not everyone knows how to make at first. Term life insurance only covers you for a certain amount of time while whole life insurance covers you for the rest of your life. You would think this would make people choose whole life insurance every time to avoid the risk. However, there are certain perks with term life insurance that whole life insurance does not offer.
If you find yourself struggling financially and close to bankruptcy, feel free to contact a Tennessee bankruptcy attorney who can help.
Why Choose Tennessee Term Life Insurance?
Many people wonder why they should invest in Tennessee term life insurance when whole life insurance lasts until you pass away. Some people do not understand what benefits could justify the risk of running out of time in a term life insurance plan compared to having all the time you need with a whole life insurance plan. However, there are several benefits offered exclusively by term life insurance that whole life insurance simply cannot provide.
For one, term life insurance is much more affordable compared to whole life insurance, which can be a huge investment to make. If the initial investment is not your concern, then you would be interested in knowing that term life insurance can serve as a temporary financial safeguard for circumstances that involve things like college tuition. Many term life insurance plans also give you the option to switch to whole life insurance or renew the policy if your time limit has run out.
With whole life insurance, you are paying more in the long run and do not have the option to switch to term life insurance. You may not be able to receive a refund of the premiums you paid for whole life insurance. Whereas, term life insurance often return portions of your paid premiums if your coverage expired before your passing.
Benefits of Tennessee Term Life Insurance
Benefits of Tennessee term life insurance include lower overall costs, simpler plans, renewable coverage, the option to switch to whole life insurance, and the possibility of having your paid premiums refunded to you if your coverage expires. The main downsides to term life insurance that you should think about before making a commitment are:
· No cash value
· Limited time of coverage
· Increased premiums if you switch to another plan
· Tough eligibility requirements
In the end, the choice is entirely yours and you will want to do your research on the specific policies of the term life insurance plan you are considering. Make sure the Tennessee life insurance plan is right for your specific situation, financially and time-wise.
Bankruptcy Lawyer in Chattanooga, TN
Choosing the right life insurance plan is your decision in the end, but you do not have to face this alone. Reach out to our legal team in Chattanooga, Tennessee, and North Georgia if you have questions about this or concerns about bankruptcy. Contact Tom Bible Law today at (423) 424-3116 to speak with a Bankruptcy lawyer in Tennessee for a free consultation. Our team of Tennessee bankruptcy lawyers is located in Chattanooga, Kingsport, and Tullahoma.