Term Life Insurance Articles
Types Of Term Life Insurance
2009-09-19
Term life insurance is a life insurance policy that is purchased under an agreement that covers a specified number of years. Under a term life insurance agreement, if the term life insurance policy holder dies during the period of time under which he or she is covered, his or her primary beneficiary will be the recipient of any cash benefits at face value accrued by the deceased policyholder. Term life insurance agreements come in a variety of forms, according to the policyholder's specification. These forms include annual renewable term insurance, pay-as-you-go life insurance and fixed-rate level term life insurance.
Annual renewable term life insurance is a type of term life insurance policy that only covers one calendar year at a time per agreement. At the time of annual renewal, the policyholder must provide proof of their ability to be insured. In other words, a policyholder may not be able to renew his or her annual renewable term policy if they suffer from certain medical conditions at the time of renewal. Annual renewable term life insurance may not be a good idea for policyholders that anticipate having a number of potentially severe health problems. People who have chronic and other serious illnesses should check with their term life insurance policy provider about the health qualifications and medical approval forms necessary. It may be in their best interest to seek out a plan that doesn't require annual renewal. Those concerned about their health should also consult with a primary care physician when making a decision about term life insurance.
A pay-as-you-go life insurance policy means that holders do not accrue any debt, and pay month to month for their coverage. Holders of this insurance have to pay premiums as long as they hold the pay-as-you-go life insurance policy. Monthly premiums may fluctuate with this type of term life insurance. This type of term life insurance policy does not usually include the option to make a predetermined number of payments that have an eventual end. Those looking for coverage over a certain period may want to look at other policy options.
Fixed-rate level term life insurance is a good option if you want to pay as you hold the policy, but aren't comfortable with the uncertain premium rates that come with pay-as-you-go plans. Fixed-rate term life insurance is a type of agreement similar to pay-as-you-go in which policyholders pay a monthly premium. However, with fixed-rate level term life insurance, the premium payment is the same every month. The rate is usually agreed upon for a fixed number of years. At the end of those years, the premium rate is up for renegotiation.
As important as life insurance is, it's beneficial to holders that there are life insurance policies that fit every financial situation.
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Term life insurance is a life insurance policy that is purchased under an agreement that covers a specified number of years. Under a term life insurance agreement, if the term life insurance policy holder dies during the period of time under which he or she is covered, his or her primary beneficiary will be the recipient of any cash benefits at face value accrued by the deceased policyholder. Term life insurance agreements come in a variety of forms, according to the policyholder's specification. These forms include annual renewable term insurance, pay-as-you-go life insurance and fixed-rate level term life insurance.
Annual renewable term life insurance is a type of term life insurance policy that only covers one calendar year at a time per agreement. At the time of annual renewal, the policyholder must provide proof of their ability to be insured. In other words, a policyholder may not be able to renew his or her annual renewable term policy if they suffer from certain medical conditions at the time of renewal. Annual renewable term life insurance may not be a good idea for policyholders that anticipate having a number of potentially severe health problems. People who have chronic and other serious illnesses should check with their term life insurance policy provider about the health qualifications and medical approval forms necessary. It may be in their best interest to seek out a plan that doesn't require annual renewal. Those concerned about their health should also consult with a primary care physician when making a decision about term life insurance.
A pay-as-you-go life insurance policy means that holders do not accrue any debt, and pay month to month for their coverage. Holders of this insurance have to pay premiums as long as they hold the pay-as-you-go life insurance policy. Monthly premiums may fluctuate with this type of term life insurance. This type of term life insurance policy does not usually include the option to make a predetermined number of payments that have an eventual end. Those looking for coverage over a certain period may want to look at other policy options.
Fixed-rate level term life insurance is a good option if you want to pay as you hold the policy, but aren't comfortable with the uncertain premium rates that come with pay-as-you-go plans. Fixed-rate term life insurance is a type of agreement similar to pay-as-you-go in which policyholders pay a monthly premium. However, with fixed-rate level term life insurance, the premium payment is the same every month. The rate is usually agreed upon for a fixed number of years. At the end of those years, the premium rate is up for renegotiation.
As important as life insurance is, it's beneficial to holders that there are life insurance policies that fit every financial situation.
