subject: Florida Term Life Insurance - What is Florida Term Life Insurance [print this page] Florida Term Life Insurance - What is Florida Term Life Insurance
What is Florida Term Life Insurance?
Florida term life insurance protects you and your loved ones during specified periods in your life and serves as a supplement to traditional life insurance coverage. As a resident of Florida, consider purchasing a term life insurance policy if you are seeking additional coverage at various stages in your life. A term life insurance policy may be right for you if you are:
Planning on raising children
Sending children or dependents away to college
Purchasing property that would result in high mortgage expenses
Starting up a new business
Undertaking major home restoration or construction projects
What are Various Types of Florida Term Life Insurance?
Term life insurance in Florida can be categorized into three general classes: level, increasing and decreasing. The type of plan you choose depends on how much you can afford in premiums and how you want the term life policy to accommodate your lifestyle. The general categories are explained below:
Level Term Life Insurance
Florida term life insurance is most commonly offered as a level term life insurance plan, which means that the potential death benefit will remain constant, or the same, over the period of time that the policy is in force. For example, if you purchase a $250,000 policy for a ten-year plan and pass away at any time during the ten years, your beneficiaries will receive the full $250,000 benefit. Additionally, your premiums generally cost the same from month to month on a level term life insurance plan.
Increasing Term Life Insurance
Another type of term life insurance plan is an increasing term life insurance policy. In an increasing term life insurance plan, the death benefit increases over the course of your policy's life. A typical reason for an increasing plan is to adjust for the natural increase in the cost of living. In the beginning of an increasing term life insurance plan, you may purchase $50,000 worth of coverage. At each renewal, you may add an additional $5,000. Typically, your premiums increase at each renewal period because the overall amount of coverage is increasing.
Decreasing Term Life Insurance
A decreasing term life insurance plan is one that offers death benefits that decrease during the time that the policy is in force. A five-year plan that begins at $100,000 may decrease $10,000 each year. Typically, the premiums for decreasing term life insurance plans remain constant over the course of the entire plan. Some examples of decreasing term life insurance plans include mortgage redemption, family income and credit life.
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