What Is Term Life Insurance?
Do you understand term life insurance? Since it is a very popular type of policy
, it would be smart to know what it is before you decide which kind of life insurance policy to buy!
A term policy guarantees coverage for a temporary period of time, and that is why it is called term. There will be a fixed premium which will be guaranteed for a period of time as well.
Sometimes the fixed length of coverage can be a few years or a few decades. Policy lengths of ten, twenty, or thirty years are common. Some may only last 6 months, while others may provide coverage until age 65. So you can see there are a lot of options to fit the needs of different consumers.
Once the policy length has expired, there is no more coverage. There is also no cash value.
However, some poliices can be extended. Others can be converted to permanent policies. These options give the policy owner some flexibility.
Sometimes term is also called pure insurance. This is because a basic policy only provides a death benefit. Unlike some other forms of life policies, there is no cash value.
Other policy options may provide more benefits, but usually come at an additional cost.
A return of premium rider costs a bit more, but refunds premiums if the insured person survives the policy.
Other common riders provide for disability or critical illness coverage. Some people add coverage for a spouse or children too. These riders can make a policy more comprehensive. This may be much simpler than buying individual policies for every thing and everybody you want to cover!
Since term is temporary, and since it is pure insurance, most people find it affordable. The is particularly true for fairly young people and people in good health. Your own premiums will depend upon many things that are unique to you. Some include your health, age, where you live, and which insurer you decide to do business with.
Should you purchase term life? Again, there is not one right answer for every person. It is important to decide what you want out of a policy, how much you can afford to spend on premiums, and then to figure out which policy will serve you best.
It is important to compare policies and premiums before you buy. Some insurers are more friendly to different types of consumers. You want to compare prices, but also poicy features to find the best choice to provide security for your family.
Online life insurance quotes can help you compare term policies in your area. The quote forms usually only take a few minutes to complete. They can help you compare policies and companies online. You should also get contact information for local insurance brokers in case you need advice.
The quote systems are free, and there is no obligation to actually buy a policy from any of the agents who use the system to find clients. You may want to purchase one of the choices though, because this can be an easy way to compare quoes and save money.
by: Marilyn Katz
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