Life insurance is one of the most essential financial things an individual may possess. A solid policy provides security for people and families in the case of an unforeseen calamity; it also has additional financial advantages (we'll get to those!). However, for many, selecting the appropriate coverage for their family or personal situation can be a daunting task. We intend to alter that.
In general, there are two types of life insurance policies: permanent life insurance and term life insurance. The duration of coverage is the fundamental distinction between these two types of life insurance. As long as premiums are paid, a universal life policy (UL), which falls under the category of permanent life insurance, offers coverage for an indefinite period of time. A UL policy can be tailored to meet particular needs and may accumulate financial value over time. Term life insurance policies are often less expensive and provide coverage for a defined period of time, typically 10 to 30 years. These policies are also adaptable, although there is a significant coverage gap. To this point, however.
Considering that Americans are working and carrying debt for longer periods of time, the ability to extend life insurance coverage beyond 30 years at an affordable price seems obvious. At least according to us! Through our subsidiary Banner Life, Legal & General America recently became the only insurer to offer a 40-year term product. It is known as OPTerm 40.
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Here are five reasons you may wish to purchase an OPTerm 40 policy:
As previously stated, standard term life insurance lasts between 10 and 30 years. Therefore, if you purchase a normal term life product in your thirties, forties, or even fifties, there is a good chance that you will outlast your coverage, especially given the increasing life expectancy in the United States. Moreover, the typical American worker is retiring later than ever before. A 2018 study indicated that the predicted retirement age is 66, up from 60 in the 1990s. For people who anticipate working well into their 60s, a 40-year term life insurance coverage provides greater peace of mind.
Mortgage insurance - For many families, the home is the most precious asset. If your life insurance policy is at least equal to the value of your mortgage, your family will be able to use the cash to pay off the mortgage and secure this valuable asset.
More options - OPTerm 40 is customisable, allowing you to create your policy with greater freedom. The amount of coverage you receive, for instance, may vary based on your previous financial responsibilities. This option can be especially appealing to millennials and members of Generation X because it lets them to maintain inexpensive coverage into retirement while leveraging the cost savings to establish a larger nest egg or college fund for their children.
Numerous advantages for businesses — For enterprises, particularly small and medium-sized organizations, an affordable 40-year term option provides numerous advantages. Purchasing key-man insurance ensures that a business will continue to operate normally in the event that its owner passes away.
When you get a 40-year term policy from a company with solid financial ratings, you can rest assured that your insurer will still be in business to provide the coverage your family requires when you actually need it. The operational companies of Legal & General America are among the most financially healthy life insurers. A.M. Best, Standard & Poor's, Fitch, and Comdex routinely rank our investment portfolio among the highest-rated by their respective agencies. If you decide to work with us, we want you to know that you and your loved ones are in good hands.
We are happy to be the only insurance company in the U.S. to offer a 40-year term product, giving a solution to an underserved market demand. If you and your family would benefit from OPTerm 40, consult your life insurance agent.
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