2-Year Term Life Insurance: The Flexible, Affordable Alternative
A lot can be happen in two years.
You can graduate with a master’s degree, fall in love, get married, have a kid or two. Or, maybe you’re more free-spirited and have chosen to work remotely as you travel the world, working at an Internet cafe in Tokyo one week, then eating a croissant on the streets of Paris the next. Or, you’re entrepreneurial, and you quit the cubicle life to start your own business.
The point is, there are a lot of reasons why short-term coverage, like a 2-year term life insurance policy, makes sense. But first…
What is Term Life Insurance?
Life insurance products come in a variety of shades, but the most well known and often least expensive is a term life policy.
Simply put, a term life policy provides coverage for a specific time period. A 10-year policy provides coverage for 10 years, 20-year for 20 years — you get it. At the time of purchase, you choose a coverage amount, usually between $50,000 and $1 million, though some policies can go much higher.
Two important things to note about term life insurance policies:
- Your monthly premium (payment) stays the same throughout the duration of term; and
- The death benefit (tax-free payout to your beneficiaries) also stays the same.
The coverage amount is the death benefit payable to your beneficiaries should you pass away during your policy term. Since this is a tax-free benefit, if you purchased a $50,000 term life policy, your beneficiaries would receive that exact amount.
Why Choose a 2-Year Term?
There are many reasons why millions of Americans have not yet purchased a life insurance policy (if you’re reading this, you’re probably one of them. #Guilty). The three most cited reasons are inconvenience, cost, and eligibility.
A 2-year term life policy instantly solves those concerns because:
It’s fast. Just a handful of lifestyle questions combined with our data and technology, we’ve done away with medical exams, allowing you to get coverage in a couple minutes as opposed to weeks.
It’s inexpensive. A healthy 25-year-old female can pay as little as $2.50 per month. That’s just a fraction of the cost of a traditional 10-year term policy, and an even tinier fraction of 20 or 30-year policies.
It’s easier to qualify for. A shorter policy term means underwriting is less strict, and therefore it may increase your eligibility. (Did we mention we don’t do medical exams?)
Who Needs a 2-Year Term Life Insurance Policy?
You might be a great candidate for a 2T policy (that’s 2-year term life in Bestow lingo) if you are:
A Responsible Procrastinator
You’re cool, calm, collected and in no hurry whatsoever. But you still feel responsible for your family. Maybe you just want to give good ol’ Bestow a try and see how this works out. Plus, that gives you two whole years to
put off evaluate what your beneficiaries might need long term.
You know buying life insurance is super important, but you’re not quite sure how much your beneficiaries might need in 20 years (or even longer!). How are you supposed to commit to a term and select just the right amount of coverage for the next 1-2 decades when you haven’t even decided what you’re eating for dinner?
A Freelancer, Side Hustler, and Entrepreneur
Your work isn’t a typical 9 to 5, so you don’t have access to traditional employer benefits. You’re responsible for your own health insurance and retirement nest egg. You’ve put off buying life insurance because — well, it seems like a huge inconvenience and just another expense. But hey, this 2T option is neither one of those things.
A Stay-at-Home Parent
You’re working overtime with this whole parenting thing, so if you’re not making money right now, why get life insurance? After all, breadwinners are the ones who need life insurance, right? Nope, here’s stay-at-home parents need life insurance.
Going Through Some Ch-Ch-Changes
Millennials have a bad rep, but this also applies to the Gen X-ers and Xillennials (yes, that’s a thing). Whether it’s grad school or a job switch, short-term insurance can prevent lapses in coverage you need.
Short Term is Better Than No Term
Bottom line, buying a 2T policy buys you time to really evaluate your circumstances.
Do you have a home? Are you buying one in the near future? Are you starting a family? Are you preparing to go back to school? These are all questions to take into consideration as you determine how much coverage you’ll need to provide for your loved ones.
But in the meantime, take deep breaths and procrastinate responsibly.
If you like your 2T policy, great! Apply for another one at the end of your term. But if you know what you want, we can help you lock in a great long-term rate, too.