Term life insurance is probably the most simple and easiest form of life insurance to understand for the common folks. It provides insurance for a specified period of time with a set premium. The time of coverage can be 10, 15, 20, or 30 years. If the insured dies within the life of the policy your dependents receive the face value of the insurance. The value of the policy is only good through the time stipulated so if the insured outlives the terms of the policy then the policy runs out. The insured must then decide whether to purchase another policy or not. Term life insurance can also be secured for up to a certain age such as 65 or 70. What you must decide is how much insurance you want to invest in and for how long of term. All in all term life insurance is simple and straight forward.
This insurance is designed to offset your debts and provide for your beneficiaries with financial assistance after your death. The funds from a term life insurance policy can be used to replace your lost income to take care of a variety of financial needs such as paying off a mortgage or paying for college education.
When looking at term life insurance you should consider a number of variables in making your selection. Your age at the time of the enrollment in the policy will weigh heavily on much you will want to buy and for how long of term. A younger person will want to consider a longer termed policy and may not be as concerned about a large dollar amount policy. An older person will probably want a shorter term policy, and look seriously at their income to debt ratio. The great feature or term life insurance is the flexibility and variable nature of the policies that can be put together.
This kind of policy can work for about anyone of any age; however, most insurers will require a medical exam before issuing a term life insurance policy. A person’s physical condition and health can affect the premiums they will be required to pay. Consequently, poor health or a history of health problems will adversely affect the rating for premiums. Also some agencies charge more for smokers and tobacco users. For those who do have trouble finding life insurance due to health issues there are special policies that do not require a medical examination. These are more commonly called simplified or guaranteed issue policies. The premiums are commensurately higher, but the policy still guarantees coverage.
Term life insurance may be the simplest form of life insurance, but it does need to be weighed with the pros against the cons to see if it truly fits your personal needs. On the positive side this insurance is most often rather affordable. It can provide a sure income for future expenses of the beneficiaries. Finally, term life insurance can be a very good supplemental insurance to a permanent life policy. On the downside term life offers no cash value and once the term expires the cost for a renewal increases commensurately.
This insurance is designed to offset your debts and provide for your beneficiaries with financial assistance after your death. The funds from a term life insurance policy can be used to replace your lost income to take care of a variety of financial needs such as paying off a mortgage or paying for college education.
When looking at term life insurance you should consider a number of variables in making your selection. Your age at the time of the enrollment in the policy will weigh heavily on much you will want to buy and for how long of term. A younger person will want to consider a longer termed policy and may not be as concerned about a large dollar amount policy. An older person will probably want a shorter term policy, and look seriously at their income to debt ratio. The great feature or term life insurance is the flexibility and variable nature of the policies that can be put together.
This kind of policy can work for about anyone of any age; however, most insurers will require a medical exam before issuing a term life insurance policy. A person’s physical condition and health can affect the premiums they will be required to pay. Consequently, poor health or a history of health problems will adversely affect the rating for premiums. Also some agencies charge more for smokers and tobacco users. For those who do have trouble finding life insurance due to health issues there are special policies that do not require a medical examination. These are more commonly called simplified or guaranteed issue policies. The premiums are commensurately higher, but the policy still guarantees coverage.
Term life insurance may be the simplest form of life insurance, but it does need to be weighed with the pros against the cons to see if it truly fits your personal needs. On the positive side this insurance is most often rather affordable. It can provide a sure income for future expenses of the beneficiaries. Finally, term life insurance can be a very good supplemental insurance to a permanent life policy. On the downside term life offers no cash value and once the term expires the cost for a renewal increases commensurately.
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