Term Life Insurance Articles
Three Ways To Increase The Value Of Your Term Life Insurance Policy
2010-09-05
Like all businesses, life insurance companies are in business to make a profit. The best way to do this is to accept risks that are not as likely to result in large claims. Term life insurance is one type of life insurance policy that a person can purchase. Term insurance protects the policy owner from huge expenses that are left upon his or her death-expenses such as a mortgage, car payments, loans, or post secondary school tuition. Term insurance is in force for a set amount of time, which can be 10, 20, or 30 years. Once this period is up, the policy can be purchased for another term, or it can be converted into a whole life policy. Life insurance policies can be purchased in several amounts, which can depend on certain factors, such as age and health status of the individual. An individual can purchase a policy that will offer increased value if he or she performs certain steps. Following are three ways to increase the value of a term life insurance policy.
First, abstain from smoking and excessive alcohol use. Insurance companies will rate a person as a smoker whether he or she puffs on a cigar once a year or smokes a pack a day. Smoking is considered to be a huge health risk that can lead to heart or lung problems as well as various other health issues. If you are able to abstain from smoking for a minimum of one year, your rates will be lowered. Indulging in the occasional alcoholic beverage will not usually affect your term life insurance, but if a person regularly binge drinks or consumes alcohol on a daily basis, insurance companies also consider this to be a high risk. Excessive alcohol use can lead to many health problems including cirrhosis of the liver. By cutting down on alcohol consumption, your insurance policy will have an increased value.
Second, avoid participating in high risk hobbies and occupations. This can include activities such as rock climbing and hang gliding or jobs that involve using dangerous equipment and machinery. Engaging in these occupations or situations is considered to be a high risk for insurance companies. There is a greater chance of being seriously injured or killed than if a person were to have a full time job sitting behind a desk all day.
Third, making healthier lifestyle choices will help to lower the risk of premature death or serious health issues. Regular exercise and a balanced, nutritious diet can extend a person's life and help lower the risk posed to insurance companies. Lower risk means lower premiums and the ability to increase the value of the life insurance policy.
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Like all businesses, life insurance companies are in business to make a profit. The best way to do this is to accept risks that are not as likely to result in large claims. Term life insurance is one type of life insurance policy that a person can purchase. Term insurance protects the policy owner from huge expenses that are left upon his or her death-expenses such as a mortgage, car payments, loans, or post secondary school tuition. Term insurance is in force for a set amount of time, which can be 10, 20, or 30 years. Once this period is up, the policy can be purchased for another term, or it can be converted into a whole life policy. Life insurance policies can be purchased in several amounts, which can depend on certain factors, such as age and health status of the individual. An individual can purchase a policy that will offer increased value if he or she performs certain steps. Following are three ways to increase the value of a term life insurance policy.
First, abstain from smoking and excessive alcohol use. Insurance companies will rate a person as a smoker whether he or she puffs on a cigar once a year or smokes a pack a day. Smoking is considered to be a huge health risk that can lead to heart or lung problems as well as various other health issues. If you are able to abstain from smoking for a minimum of one year, your rates will be lowered. Indulging in the occasional alcoholic beverage will not usually affect your term life insurance, but if a person regularly binge drinks or consumes alcohol on a daily basis, insurance companies also consider this to be a high risk. Excessive alcohol use can lead to many health problems including cirrhosis of the liver. By cutting down on alcohol consumption, your insurance policy will have an increased value.
Second, avoid participating in high risk hobbies and occupations. This can include activities such as rock climbing and hang gliding or jobs that involve using dangerous equipment and machinery. Engaging in these occupations or situations is considered to be a high risk for insurance companies. There is a greater chance of being seriously injured or killed than if a person were to have a full time job sitting behind a desk all day.
Third, making healthier lifestyle choices will help to lower the risk of premature death or serious health issues. Regular exercise and a balanced, nutritious diet can extend a person's life and help lower the risk posed to insurance companies. Lower risk means lower premiums and the ability to increase the value of the life insurance policy.
