Looking For Term Life Insurance?
Reader’s Question:
My wife and I recently got divorced, but we still want to buy an insurance policy to cover our children. My life insurance agent here in North Carolina suggested term life insurance. What are its advantages?
Victor
Charlotte, NC
I appreciate your concern for your children, Victor. And your agent has a point in offering term life insurance. It is a better choice because it is flexible and it is renewable. It is logical to get a term life insurance because it allows you to provide coverage for your children while letting you fulfill your financial obligations to one another.
Since it is not a permanent type of life insurance, it only provides coverage for a specific period of time. So, you have the option of extending the scope of your dependents’ beneficiaries as you go along or as your finances allow you. It is a cheaper alternative to whole life insurance wherein the premiums are generally higher. Term Life insurance is more affordable, and some companies may even provide coverage for your children until they reach the age of 21.
Another reason why term life insurance is more suited for you is because they give you the option of naming and renaming your beneficiaries. The insurance company does not need to know that you have been through a divorce, so you can keep your affairs private.
You and your agent should be able to find a company that is capable of providing for your specific needs. I’m sure there are companies in North Carolina who are dependable and competent in providing a term life insurance that will tailor-fit your situation. Good luck!
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