Term Life Insurance- Types of Coverage
There are many types of insurance policies to choose from inside the category of term life insurance. By educating yourself, it can be easy to find the coverage that you need. Most people who don't have life insurance coverage feel like they don't need it. Others simply don't understand it so they don't bother. Now, you can learn all about term coverage and whether it is right for you so that you can make the right decision for your needs. Here are a few types of term policies that you have to choose from:
5-Year Level Term Coverage: This is a policy that has a premium and face value (death benefit) that remains the same for the entire period of the policy. At death, the benefit can be paid as a lump sum or as an income with installments depending on the insured's preference. If you are covering a bank loan or other short-term event, this protection can help.
10-Year Term: This policy is used like the 5 year policy, but it can also do a lot more. The policy premium and value remains the same throughout the policy period, but the money can be used for protection and other needs, as well. You can often renew the policy after the period for a slight premium increase.
20-Year Term Coverage: This is one of the most popular life insurance policies out there. Like the other term policies, it keeps a level death benefit and premium. Of course, there are some companies that will increase the premium after the first 10 years to reflect risk level increases, but it is still affordable and gets the job done.
Increasing Term Life: With increasing premium coverage, you will buy cheap insurance that maintains a level death benefit for the entire policy period. However, you will pay low premiums at first that will increase as time goes on. This policy is best used when converted to a level policy after purchase.
Decreasing Term Life: This is an insurance policy where you pay a level premium throughout the policy. Over time, the face value of the insurance decreases based on a standard schedule. This coverage is definitely inexpensive for those who need limited coverage for a specific event.
These are some of the most popular types of term life insurance coverage. It will be up to you to weigh each option and find the policy that suits your needs.
If you would like more information on life insurance at prices half off the usual cost normally offered in the marketplace, visit our web site for a discounted rate quote on lifeinsurance.