Term Life Insurance Articles
What To Look For When Comparing Term Life Insurance Quotes
2010-11-18
Life insurance is a thoughtful way to provide for a family's needs in the event of the breadwinner's death. Term life insurance is the best option for consumers who need high coverage amounts for a known length of time. It is commonly purchased in amounts sufficient to pay off the mortgage, consumer debt and provide for dependents until they reach adulthood. Because term life insurance has no cash value, term life insurance rates are less expensive for more coverage than cash value policies. When comparing term life quotes, it is necessary to understand the differences in the various types of term life policies.
Term life insurance is purchased for a specific length of time or term. The insurance pays when the insured dies within the term. Once the term has expired, the insurance is no longer in effect. With level term policies, the premium remains the same for the term of the policy. The most common terms are 10, 15, 20 and 30 years. The longer the term, the more expensive the premium is. The premium for a 20-year policy is more expensive than the premium for a 10-year policy because the risk for the insurance company increases as the person ages. Some long-term policies do not guarantee that the premiums will not increase over time. Level term policies may or may not have a guaranteed renewal option. A guaranteed renewal option gives the consumer the benefit of renewing the policy for an additional term without undergoing a physical exam. The premiums will, of course, be more expensive than the premiums of the original policy were. Without a renewal option, the consumer must qualify for a new policy if coverage is needed for an extended period.
With decreasing term policies, premiums remain the same, but the dollar amount of coverage decreases each year. This is a reasonable option for people who are not burdened with consumer debt and foresee the financial need of dependents decreasing with time. Decreasing term insurance is less expensive than level term insurance.
Renewable term insurance is another type of term life insurance. With this option, the policy is guaranteed for a certain number of years. When the term is up, the policy can be renewed without a physical exam. Each time the policy is renewed, the death benefit remains the same, but the premium goes up. The coverage term varies, but annual renewable term life is the most common.
When comparing term life quotes check the insurance companies' ratings with rating services such as A.M Best and Standard & Poor's. Compare the term life insurance rates of the same kind of policy from several, strong companies with high scores to get dependable coverage.
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Life insurance is a thoughtful way to provide for a family's needs in the event of the breadwinner's death. Term life insurance is the best option for consumers who need high coverage amounts for a known length of time. It is commonly purchased in amounts sufficient to pay off the mortgage, consumer debt and provide for dependents until they reach adulthood. Because term life insurance has no cash value, term life insurance rates are less expensive for more coverage than cash value policies. When comparing term life quotes, it is necessary to understand the differences in the various types of term life policies.
Term life insurance is purchased for a specific length of time or term. The insurance pays when the insured dies within the term. Once the term has expired, the insurance is no longer in effect. With level term policies, the premium remains the same for the term of the policy. The most common terms are 10, 15, 20 and 30 years. The longer the term, the more expensive the premium is. The premium for a 20-year policy is more expensive than the premium for a 10-year policy because the risk for the insurance company increases as the person ages. Some long-term policies do not guarantee that the premiums will not increase over time. Level term policies may or may not have a guaranteed renewal option. A guaranteed renewal option gives the consumer the benefit of renewing the policy for an additional term without undergoing a physical exam. The premiums will, of course, be more expensive than the premiums of the original policy were. Without a renewal option, the consumer must qualify for a new policy if coverage is needed for an extended period.
With decreasing term policies, premiums remain the same, but the dollar amount of coverage decreases each year. This is a reasonable option for people who are not burdened with consumer debt and foresee the financial need of dependents decreasing with time. Decreasing term insurance is less expensive than level term insurance.
Renewable term insurance is another type of term life insurance. With this option, the policy is guaranteed for a certain number of years. When the term is up, the policy can be renewed without a physical exam. Each time the policy is renewed, the death benefit remains the same, but the premium goes up. The coverage term varies, but annual renewable term life is the most common.
When comparing term life quotes check the insurance companies' ratings with rating services such as A.M Best and Standard & Poor's. Compare the term life insurance rates of the same kind of policy from several, strong companies with high scores to get dependable coverage.
