Term Life Insurance Articles
What Guaranteed Reinsurability Means For Term Life Insurance
2010-07-29
Term life insurance is insurance bought to be in effect for a certain period of time, or term. It is purposely temporary insurance, and generally is bought because it is considerably less expensive than whole life or universal coverage. The premiums stay the same for the life of the policy, and the policy accrues no cash value over its period. The term is set at the time the policy is written, and can be for as little as a year or as much as 30 years, or even longer. If it lapses before death occurs, there is no payout, but generally the opportunity is there to renew the term life insurance quote. The premiums would of course be higher, as the buyer's age has increased since the policy first went into effect. But there are several ways that insurance companies can alter the provisions of the policy which can affect the term life insurance quotes the prospective buyer receives.
The language of the policy can be altered by amendments, called "riders," to customize the policy to the buyer's needs. Some typical riders are: waiver of premium rider (which keeps the policy in force even if the insured becomes totally disabled), the accelerated death benefit rider (allowing the insured to collect a portion of the benefit while living, if he or she has contracted a terminal disease), and of course the guaranteed reinsurability rider.
The guaranteed reinsurability rider allows the insured to buy additional term coverage at the expiration of the policy without having to provide proof of reinsurability. If the insured's health has deteriorated considerably during the life of the policy, having this rider in effect would allow continued coverage despite this new health condition. The advantage to this is obvious, since the means and ability to provide for loved ones after the insured's death would continue when it's needed most. It's not an automatic renewal, as quite a few insurance companies impose a waiting period before selling the insured a new policy, and they also impose caps on coverage for such riders.
When a prospective customer is shopping for term life insurance quotes, he should keep several considerations in mind. The first thing to consider is how old will he will be when the policy's lifetime ends. Next, he must determine what the chances are his health could decline drastically before the policy ends. Finally, he must think about what might have changed in his life that would make it advantageous to be able to renew coverage despite otherwise being uninsurable. No one can predict the future, but planning for it can be made easier with a little forethought and by getting a term life insurance quote.
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Term life insurance is insurance bought to be in effect for a certain period of time, or term. It is purposely temporary insurance, and generally is bought because it is considerably less expensive than whole life or universal coverage. The premiums stay the same for the life of the policy, and the policy accrues no cash value over its period. The term is set at the time the policy is written, and can be for as little as a year or as much as 30 years, or even longer. If it lapses before death occurs, there is no payout, but generally the opportunity is there to renew the term life insurance quote. The premiums would of course be higher, as the buyer's age has increased since the policy first went into effect. But there are several ways that insurance companies can alter the provisions of the policy which can affect the term life insurance quotes the prospective buyer receives.
The language of the policy can be altered by amendments, called "riders," to customize the policy to the buyer's needs. Some typical riders are: waiver of premium rider (which keeps the policy in force even if the insured becomes totally disabled), the accelerated death benefit rider (allowing the insured to collect a portion of the benefit while living, if he or she has contracted a terminal disease), and of course the guaranteed reinsurability rider.
The guaranteed reinsurability rider allows the insured to buy additional term coverage at the expiration of the policy without having to provide proof of reinsurability. If the insured's health has deteriorated considerably during the life of the policy, having this rider in effect would allow continued coverage despite this new health condition. The advantage to this is obvious, since the means and ability to provide for loved ones after the insured's death would continue when it's needed most. It's not an automatic renewal, as quite a few insurance companies impose a waiting period before selling the insured a new policy, and they also impose caps on coverage for such riders.
When a prospective customer is shopping for term life insurance quotes, he should keep several considerations in mind. The first thing to consider is how old will he will be when the policy's lifetime ends. Next, he must determine what the chances are his health could decline drastically before the policy ends. Finally, he must think about what might have changed in his life that would make it advantageous to be able to renew coverage despite otherwise being uninsurable. No one can predict the future, but planning for it can be made easier with a little forethought and by getting a term life insurance quote.
