subject: Finding Affordable Us Term Life Insurance Policies Today! [print this page] When many people consider buying a life policy, they consider term. This is because term policies give us a cheaper way to purchase a larger face value. Because it is more affordable, it is usually considered by families and companies.
Term life poliices are temporary, and not permanent. They can last for one year or thirty years. It may seem like the term will last forever. But the contract still ends. It ends within a time preiod that the insurer believes will be survived by the insured person too. That is why most policies require health underwriting in the form of health questions or, sometimes, even a medical exam.
So the life insurance company assumes you will survive, but you are purchasing a policy just in case you do not. When individuals purchase policies, they are usually hoping to provide for their families in case they pass away. Their family will still have some income to pay bills, make house payments, or educate children.
Companies buy life insurance too. Sometimes they have different reasons. A business may insure a key person. The death of that person may have a strong negative affect on the company. If that person should pass away, they want to be sure that they do not suffer a serious financial loss.
Pure term life insurance expires with no value left in the contract. When it ends, it ends with no value to the insured person. There are hybrid products that may be slightly different, but this is mostly true. A good reason to buy term would be to cover some financial goal that will have an end date.
What are some examples of this? A business may purchase a 30 year term policy on an owner because they believe he or she will retire by then. A family may purchase a 20 year term policy on one of the income earners because they have a 20 year mortgage they want to protect. There are lots of financial goals that people and companies want to protect that will be well covered with term policies.
It is hard to know what will happen 10 or 30 years in the future though. So many people look for a term policy with an option to covert to whole life. The premanent policy will cost more so people may reduce the coverage amount. But this provides a way to protect financial goals now, but also to leave some options open for retirement life insurance in the future.
How much will it cost? Your own premium will be determined by a variety of factors. You probably know that your health status, how old you are, and what options you pick will affect rates. Where you live and your health will also affect your final premiums. Even the top, nationally known insurers, will have different prices and policies. Be sure to compare life insurance quotes with several companies because they are not all the same.
by: Marilyn Katz
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