Term life insurance guide: we give you the facts
plus find the best free quotes services on the Internet
Life insurance (term, whole, universal, variable)
is needed to protect your loved ones and others from being adversely
affected if you were to suddenly pass away. So getting insured should
be a necessary part of your financial strategy.
Life insurance policy: What you should consider before you purchase
one?
- Consider
your financial situation- the more money you have the less insurance
you might need.
- The
standard of living you want for your dependents.
- How
will your final bills be paid.
- How
will your funeral cost be paid.
Term and permanent: the two forms of life insurance available
Term (temporary) life insurance provides coverage
for a period, generally any where between 1 and 20 years. If the
insured were to pass away during the covered period a death benefit
would be paid out to the beneficiaries.
Permanent life insurance (whole, variable, universal) on the other
hand provides coverage for life. It also has a built-in savings
component that is invested by the insurance company.
Types of term life insurance policies available
We all have different needs and the features below are designed
into term life policies to cover those needs.
Annual renewable term life insurance
As the name suggest, annual renewable term life insurance renews
every year without you doing anything. It is an automatic process
done by the insurance company. It also escapes the annual increases
that insurance companies tend to force on us.
Renewable term life insurance
Similar to the above, renewable term life renews every time the
coverage period ends. The good thing about this feature is that
you have the right to another term policy. This is important since
some companies could refuse to give you another term policy if your
health gets worse.
Convertible term life insurance
With convertible term life the policy holder has the right to convert
to permanent life whenever he or she chooses to. It's a good choice
if you would like to purchase permanent life but cannot afford it
at the moment.
Level premium term life insurance
As the name implies, level premium term life insurance guarantees
that your premiums stays the same for the life of the coverage.
Though the premiums will be larger than the other types initially,
it's a way of ensuring that you pay the same regardless of your
health. So if you are the type that's prone to poor health, this
is the type of term life you should be looking into.
Decreasing term life insurance
With decreasing term life, your premiums remain the same for the
life of the policy, but your cash benefits decrease annually.
Now that you understand the types of term life available let's
move onto discussing permanent life insurance.
If
you are interested in getting free life insurance quotes (term or
permanent) the two services below are among the best on the Internet.
Free life insurance quotes
AccuTerm.com
- term life quotes
(top pick)
They'll find you the most competitive term rates available. Just
fill out their short 1 page application and in minutes they will
search their database of term life quotes from thousands of reputable
companies and return a personalized set of quotes within minutes.
You'll save up to 70% off your term life policy by using
their service.
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