Life Insurance Policy – Types of Term Life Insurance
Life Insurance Policy Types of Term Life Insurance
If you want your family to be taken care of after you are gone, but do not want to pay extra for permanent life insurance, consider purchasing a term life insurance policy instead. Unlike permanent or whole life insurance, term life insurance only provides benefits for a specific period of time. The actual length of your policy varies, but can range from as little as 5 years to as much as 50 years. Before you buy term life insurance, know your options so that you get the cheapest possible policy. There are several different types, including level term, annual renewable, and no exam life insurance.
Level term life insurance is the most common available type. This type is also called level premium insurance because the premium stays the same throughout the term period. Common policy lengths are 10, 15, 20, and 30 years. While this type of life insurance policy can be relatively inexpensive if you choose a short term length, your premiums will increase proportionally the longer you are insured. Some insurance companies will allow you to renew automatically, while others will require a medical exam to prove your insurability. When it comes to cheap term life insurance, know your options before you make a final decision.
Annual renewable term life insurance is one of the simplest types of term life insurance on the market. This type only provides one year of coverage. The insurance company will be responsible for death benefits only if you die during that period. This is yet another reason why you should research cheap term life insurance, know your options, and consult an expert if necessary. Most people do not choose to purchase life insurance for just a year because those who have terminal illnesses, and therefore would need it most, are often considered uninsurable. Annual renewable term life insurance, however, is guaranteed renewable for a given amount of time. Premiums increase every year until the policy's expiration.
Finally, you might consider purchasing no exam cheap term life insurance know your options, however, and do not consider this type unless the others do not work for you. With this type of insurance, you do not have to go through a medical examination before you can be insured. The appeal of no exam life insurance is the quick application process and the fact that these plans are generally guaranteed issue. This gives people with terminal illnesses the chance to collect a death benefit even if they would not be insured under normal circumstances.
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