Types of Life Insurance
There are different types of life insurance available to financially protect your family in case of death of you, your spouse or your child. Insurance policies can range from just covering funeral costs to replacing the salary that would have been earned if the insured had not died. Some of the types of life insurance are term life insurance and permanent life insurance. This kind of financial protection keeps people in their homes, food on the table, children in college and many other financial burdens at bay when a loved one has died.
What is Term Life Insurance?
Term life insurance is an insurance policy that covers a specific period of time. When the policy ends, the insured would need to renew his or her policy. Having a life insurance policy for only one year is possible with term life insurance. The premiums for a term life insurance policy are typically more affordable than a permanent life insurance policy. Unlike a permanent life insurance policy, with term life insurance your policy will not have any cash value.
What are the Options With Term Life Insurance?
You can purchase a policy for a term of one year. At the end of that year, you would need to purchase another policy. Each year, as you get older, your premium will go up or you may become uninsurable. For these reasons, there are two options for term life insurance that you may want to consider. The first is called an annual renewable term life insurance policy, this policy will guarantee that you can renew your policy for a set number of years such as 10 or 20 years. The second is guaranteed level premium term life insurance. Your premium will remain at a set price for a period of between 10 and 30 years. These two policies will carry a higher annual premium from the beginning to off-set the fact that by the end of the set term you may be paying a lower premium annually than you would if you had just purchased a one year term life insurance policy year after year.
How do I get a Term Life Insurance Policy?
Contact an insurance agency or your insurance agent to get a quote on premiums for term life insurance. Some of the factors that will determine your rate are age, health, whether you smoke, and the amount you would like the policy to pay out. Check with other companies also, if you feel the rate is too high.
Take care of your loved ones by providing financial security for them with term life insurance.
What is Term Life Insurance?
Term life insurance is an insurance policy that covers a specific period of time. When the policy ends, the insured would need to renew his or her policy. Having a life insurance policy for only one year is possible with term life insurance. The premiums for a term life insurance policy are typically more affordable than a permanent life insurance policy. Unlike a permanent life insurance policy, with term life insurance your policy will not have any cash value.
What are the Options With Term Life Insurance?
You can purchase a policy for a term of one year. At the end of that year, you would need to purchase another policy. Each year, as you get older, your premium will go up or you may become uninsurable. For these reasons, there are two options for term life insurance that you may want to consider. The first is called an annual renewable term life insurance policy, this policy will guarantee that you can renew your policy for a set number of years such as 10 or 20 years. The second is guaranteed level premium term life insurance. Your premium will remain at a set price for a period of between 10 and 30 years. These two policies will carry a higher annual premium from the beginning to off-set the fact that by the end of the set term you may be paying a lower premium annually than you would if you had just purchased a one year term life insurance policy year after year.
How do I get a Term Life Insurance Policy?
Contact an insurance agency or your insurance agent to get a quote on premiums for term life insurance. Some of the factors that will determine your rate are age, health, whether you smoke, and the amount you would like the policy to pay out. Check with other companies also, if you feel the rate is too high.
Take care of your loved ones by providing financial security for them with term life insurance.
posted by Ivon T. Hughes at 3:09 PM
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