Term Life Insurance Protects Family, Future of Loved Ones
on: July 7, 2009, 6:01 am
Term life insurance works by paying a predetermined amount of money to any
beneficiary you choose if you pass away during the term of the policy.
Term life insurance is the most popular type of life insurance policy because it is
affordable, easy to understand, and simple to setup. It’s still important you
understand how term life policies work before you go shopping for one so you know
what questions to ask your life insurance agent.
Understanding the differences between whole and term life insurance is a good place
to start. According to a recent article on InsuranceAgents.com, “Term life insurance
is cheaper than permanent life insurance, it’s temporary but usually renewable, it
has no cash value element and no policy loan provisions, and it usually can convert
or transfer to a permanent life insurance.”
If your financial needs aren’t permanent such as tax debt, a term life policy will
benefit you the most since it is perfect for things such as paying off mortgages or
It’s important to remember that term life insurance starts off very affordably, but
the costs do tend to increase over time. Sometimes these cost hikes are annual, but
they can also be periodic throughout the course of the policy. Also, keep in mind
term life insurance policies typically come in 15 or 30 year coverages and you will
need to discuss with your agent which one is best for you. “When the term is up, so
is the coverage. The insurance carrier will not pay the coverage if the insurer dies
at any time (even a day) after the term,” according to the article.
If you don’t feel that term life insurance is the best choice for you, there are
several other types like variable and whole. Discussing the available options with
your life insurance agent is highly recommended on such an important financial
decision like this.
To find a local agent and compare up to 5 life insurance quotes,
try using a service like InsuranceAgents.com to find the lowest rate on a new
Contact Details: Tom Lustina
435 North LaSalle
614 286 0193