Term Life Insurance Calculator
Term life insurance is the original form of life insurance and can be contrasted
to permanent life insurance such as whole life, universal life, and variable universal life, which guarantee coverage at fixed premiums for the lifetime of the covered individual. Many permanent life insurance products also build predetermined cash value over the life of the contract, available for later withdrawal by the client under specific conditions. However, on most cash value policies like Whole Life insurance, the only way to receive the "savings" is to cash out the policy. The beneficiaries receive the face value of the insurance but NEVER the cash value with Whole Life policies. Financial advisers generally advise buying term life insurance and investing the difference elsewhere.
Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
The main benefits of using a life insurance needs calculator to figure out how much life insurance to buy include:
1. Easy You just answer a few questions.
2. Quick You get an instant answer.
3. Customized Its based on your personal needs.
4. Accurate It fits your financial situation.
When you think about it, using a life insurance calculator to quickly and easily determine your life insurance needs is one of the smartest things you could do when it comes to protecting your family.
Why? Because, by using a term life insurance calculator you find out exactly what amount of life insurance meets your personal needs of your family.
That means you buy enough life insurance to properly protect the ones you love in case you pass away. And, you dont buy more life insurance than your family needs so you keep more of your hard-earned money in your pocket.
It just makes sense to take the time, a few minutes, to find out how much life insurance is right for you especially when it's so quick and easy to find out online in just minutes.
Use a term life insurance calculator to help you find out how much life insurance is right for you.
The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.
Because the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.
One of the main challenges to renewal experienced with some of these policies is requiring proof of insurability. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.
Some policies offer a feature called guaranteed re-insurability that allows the insured to renew without proof of insurability.
A version of term insurance which is commonly purchased is annual renewable term (ART). In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. This period varies from 10 to 30 years, or occasionally until age 95. As the insured ages, the premiums increase with each renewal period, eventually becoming financially in viable as the rates for a policy would eventually exceed the cost of a permanent policy. In this form the premium is slightly higher than for a single year's coverage, but the chances of the benefit being paid are much higher.
For more information on Term life insurance calculator
you can visit our website http://www.insuremegenie.com/Calculator/Calci_HLV.aspx
by: Rakesh Mishra
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