Term Life Insurance Articles
Understanding Where Your Term Life Insurance Rates Come From
2010-10-16
Life insurance is a huge part of your family's financial planning. Without it, if something happens to you, your family could be in a lot of trouble. Getting the best term life insurance quotes can easily be done online. This article will talk about what a term life insurance policy is and what criteria are used to calculate term life insurance rates.
Term life insurance is a policy set for a specific period of time. The amount of time, or term, of this type of policy can be from 1 to 30 years. If you die before the policy expires, your beneficiary or beneficiaries will receive your death benefit; however, if you do not die, there is usually no return on the investment. In some circumstances, there can be a return on a portion of the investment with a policy known as return of premium term life insurance.
Term life insurance policies are most often used as a short term effort to make sure certain things will be taken care of. For instance, you may choose a five-year term life policy when your child starts college to ensure that the funds are available for him or her to finish. Or, you may choose a 20-year term life insurance policy to cover your mortgage. Term life insurance rates are normally less expensive than whole life policies.
There are four things used to determine the term life insurance rates: the length or term of the policy, the amount of the coverage, your age, and of course, your health. As with any personal insurance policy, your health may be the main factor in your term life insurance quotes. Those who are healthy, do not drink or smoke and maintain a healthy weight will, of course, pay much less for a term life insurance policy than those who are not as healthy.
Your age plays a role in your term life insurance rates as well. The older you are, the more you will pay. For instance, a 20-year-old man might pay $300 a year for a $50,000 20-year term life policy, but a 60-year-old man will pay $1000 a year for the same policy. This is because there is a much bigger risk that the 60-year-old will pass away before the policy expires, and the insurance company must set the term life insurance rates based on that risk.
The amounts of coverage, as well as the length of coverage, are also important in term life insurance quotes. A long term policy will, of course, cost more than a short term for the same amount. A policy for $50,000 in coverage will cost more than a policy for $500,000 in coverage.
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Life insurance is a huge part of your family's financial planning. Without it, if something happens to you, your family could be in a lot of trouble. Getting the best term life insurance quotes can easily be done online. This article will talk about what a term life insurance policy is and what criteria are used to calculate term life insurance rates.
Term life insurance is a policy set for a specific period of time. The amount of time, or term, of this type of policy can be from 1 to 30 years. If you die before the policy expires, your beneficiary or beneficiaries will receive your death benefit; however, if you do not die, there is usually no return on the investment. In some circumstances, there can be a return on a portion of the investment with a policy known as return of premium term life insurance.
Term life insurance policies are most often used as a short term effort to make sure certain things will be taken care of. For instance, you may choose a five-year term life policy when your child starts college to ensure that the funds are available for him or her to finish. Or, you may choose a 20-year term life insurance policy to cover your mortgage. Term life insurance rates are normally less expensive than whole life policies.
There are four things used to determine the term life insurance rates: the length or term of the policy, the amount of the coverage, your age, and of course, your health. As with any personal insurance policy, your health may be the main factor in your term life insurance quotes. Those who are healthy, do not drink or smoke and maintain a healthy weight will, of course, pay much less for a term life insurance policy than those who are not as healthy.
Your age plays a role in your term life insurance rates as well. The older you are, the more you will pay. For instance, a 20-year-old man might pay $300 a year for a $50,000 20-year term life policy, but a 60-year-old man will pay $1000 a year for the same policy. This is because there is a much bigger risk that the 60-year-old will pass away before the policy expires, and the insurance company must set the term life insurance rates based on that risk.
The amounts of coverage, as well as the length of coverage, are also important in term life insurance quotes. A long term policy will, of course, cost more than a short term for the same amount. A policy for $50,000 in coverage will cost more than a policy for $500,000 in coverage.
