Search Reprint Articles:

Term Life Insurance Explained

By: Ken Charnly

Term life insurance is basically a “no frills” type of life insurance. It is a life insurance for a specified duration limit, or time. You buy a specific amount of coverage for a specific time period by signing a contract. You pay for that coverage period and at the end of the term the
policy expires. For example, the term might be until retirement, or until children are grown, or until college is paid for.

Term life insurance is the least expensive available insurance policy and allows you to spend a lot less and use the extra money in a better investment. It does not build up cash value and the premium normally increases as the policy owner gets older. Usually term life insurance covers a specific term such as term of 1year, term of 20 years or term of 30 years.

If you die while the policy is active, term life insurance provides a stated benefit for it; and your survivors will be paid the agreed upon amount. However, the policy does not provide any returns beyond the stated benefit and once the policy expires, the insurance coverage ceases and the insurance company keeps the money. Some term insurance policies give you the right to renew at the same rate for multiple years, while others do not. The former are generally a bit more expensive.

Term life insurance is most suitable for you, if you are:
• in need of coverage for a limited period of time,
• young and looking for lower premiums,
• buying a home or car, where the financial burden of a loan will disappear in time.

Term life insurance policies must be renewed when each term ends. Before buying a term life insurance policy, you should ask about the renewal provisions for the protection of your future insurability. There are some typical choices:
• Annual Renewable-----the premium go up each year.
• Level Term-----the premium stays the same for specific period like 5, 10, 15, or 20

years, then increases sharply.
• Automatic Renewable-----you'll have to pay more for this feature.

Some other options on term life insurance policies may include:
• Re-Entry------it requires a lower premium than an automatically renewable policy. You can

renew at the same low rate offers to new customer; but you'll have to pass a physical examination. If you've developed any health problems, your premium could go up and cost more than

an automatic-renewable policy.
• Convert-able term------you’ll have the option to convert to a whole life insurance policy in later years.


About the Author:

Ken Charnley is a personal finance enthusiast with www.online-loans-pro.com/ dedicated to quality information on online loans. For all your online loan needs visit and apply for loans online
Article Submission done by: www.articles-submit.com
Courtesy of:Articleteller.com

Title:
Term Life Insurance Explained
Article Distribution and Free Web Content by www.reprint-content.com

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Life Insurance Articles Via RSS!


  • Life Insurance Premium - By : Danny Decruz
  • Best Life Insurance Tips: Helping You Save In 2008 - By : Lara Newcomb
  • How to Use Systems to Maximize Your Life Insurance Leads - By : Dean Cipriano
  • Life Insurance Savings: 5 Ways to Save in 2008 - By : Alexei Timchuk
  • When Trying To Arrange Life Insurance Where Do You Go? - By : Chris Clare
  • Pay as You Go car insurance? - By : 4ps marketing
  • Second to DIe Life Insurance - By : 4ps marketing
  • Discussion Regarding Suicide Benefits and Life Insurance - By : Monty Loree
  • Things to Know About Life Settlements - By : Ron
  • Individual dental insurance: is it good for you? - By : Jim..
  • A division of Kaizen Publishing Inc. All rights reserved. Copyright 2005-present

    Powered by Article Dashboard