Term Life Insurance Articles
Understanding What Term Means In Term Life Insurance
2010-07-24
There are few things more awkward to discuss and contemplate than life insurance. It's only natural for the process of insuring one's life to be a sticky subject; you are, of course, setting up a plan for someone to collect a large amount of money in the event of your demise.However, the better we understand something, the less frightening it typically becomes, and a term life insurance quote is no different. Part of this vagueness and lapse in understanding has to do with the sheer number of different kinds of term life insurance quotes. There's whole life, variable life, universal and term life, among others. Term life is the most affordable and subsequently the most common form of life insurance. But what does the term mean?
Although the idea of insurance has been around since as early as 5000 BC, the concept of life insurance can be traced back to the ancient Romans. Originally known as "burial clubs," groups of Romans would pool their money and cover the cost of the deceased's funeral. Modern life insurance originated in England during the 17th century and eventually spread to America by the early 1700s.
Term life insurance provides the purchaser life insurance coverage for a fixed amount of time and a fixed rate of pay. At the end of the "term" the purchaser can either carry on uninsured or repurchase more coverage at a likely higher rate. Term life insurance is the original form of life insurance in contrast to permanent or whole life insurance. Operating on a pure death benefit basis, term life is designed to cover the financial responsibilities of the insured. Typical usages of term life insurance payouts are debt, dependent care, the cost of a funeral and unpaid mortgages.
Financial advisers have long encouraged their clients to look into term life insurance quotes and often instruct people to pick a plan that's term ends around their retirement age - the reason being that most people have had an opportunity by then to amass an appropriate level of funds to care for their dependents.
Term life insurance quotes can vary because of several factors. Typically, the insurance company will look at a person's age, gender, lifestyle and medical history before giving them a term life insurance quote. Regardless, a term life insurance quote will almost always be the most affordable form of insuring one's life. Interestingly, recent studies have shown that only 1% of term life insurance policies ever get payed out. This is ultimately the reason why policy costs are able to stay so relatively low. So for practical people looking to insure their loved one's futures on a budget, term life insurance is the way to go.
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There are few things more awkward to discuss and contemplate than life insurance. It's only natural for the process of insuring one's life to be a sticky subject; you are, of course, setting up a plan for someone to collect a large amount of money in the event of your demise.However, the better we understand something, the less frightening it typically becomes, and a term life insurance quote is no different. Part of this vagueness and lapse in understanding has to do with the sheer number of different kinds of term life insurance quotes. There's whole life, variable life, universal and term life, among others. Term life is the most affordable and subsequently the most common form of life insurance. But what does the term mean?
Although the idea of insurance has been around since as early as 5000 BC, the concept of life insurance can be traced back to the ancient Romans. Originally known as "burial clubs," groups of Romans would pool their money and cover the cost of the deceased's funeral. Modern life insurance originated in England during the 17th century and eventually spread to America by the early 1700s.
Term life insurance provides the purchaser life insurance coverage for a fixed amount of time and a fixed rate of pay. At the end of the "term" the purchaser can either carry on uninsured or repurchase more coverage at a likely higher rate. Term life insurance is the original form of life insurance in contrast to permanent or whole life insurance. Operating on a pure death benefit basis, term life is designed to cover the financial responsibilities of the insured. Typical usages of term life insurance payouts are debt, dependent care, the cost of a funeral and unpaid mortgages.
Financial advisers have long encouraged their clients to look into term life insurance quotes and often instruct people to pick a plan that's term ends around their retirement age - the reason being that most people have had an opportunity by then to amass an appropriate level of funds to care for their dependents.
Term life insurance quotes can vary because of several factors. Typically, the insurance company will look at a person's age, gender, lifestyle and medical history before giving them a term life insurance quote. Regardless, a term life insurance quote will almost always be the most affordable form of insuring one's life. Interestingly, recent studies have shown that only 1% of term life insurance policies ever get payed out. This is ultimately the reason why policy costs are able to stay so relatively low. So for practical people looking to insure their loved one's futures on a budget, term life insurance is the way to go.
