Term Life Insurance
Term life insurance
provides coverage for a specified period of time - the term of
the policy (typically ranging from five to thirty years). After
this time, it is possible to renew your policy with the premium
adjusted for your health and age at the time you renew. Your
policy is paid out only upon death within the prescribed period
of time. Term policies allow you to save substantially on premiums
so you can invest the savings in a higher yielding investment.
Term life insurance policies are
designed to meet a specific need for a specific period of time.
The most common type today is level term (level meaning it stays
the same), which has a level death benefit and a level premium.
These policies are commonly used to provide protection for families
until their children reach a certain age (usually 18 or 21).
It is also useful as an affordable starting point - you can convert
it to a universal or whole life policy at a later date.
Another type of term life insurance,
decreasing term, is generally sold with a level premium and a
decreasing death benefit. One common use of decreasing term is
to cover a remaining mortgage - designed to decrease at the same
rate your mortgage balance decreases. These types of policies
are often offered as riders in connection with whole and universal
life policies, with the whole or universal life policy providing
the "backbone" of your overall protection plan. A number of factors
will influence your decision, including your health, your budget,
your immediate needs and your long term plans and goals.
Exploring all the available insurance
policies, options and riders can be mind boggling. An experienced
professional can analyze your situation to help you decide how
much protection you need and help you design an overall insurance
plan that will provide you and your family the highest level
of security at the best possible pricing. Once you have a plan
in mind, shopping gets a lot easier.
Rates and coverage vary form state
to state. Shop around on your own and talk to an independent
insurance agent to make sure you get a plan that's right for
you. It's amazing how much rates may vary from company to company
for the same coverage.
For more information
or a quote on term life insurance complete our free
life insurance quote request form. |
