What are the different Term Life Insurance policies that are available to you?
When choosing what is the best life insurance policy to take out there is a lot that you need to keep in mind and a lot of decisions that you need to make. This is purely for the fact that there are a lot of different insurance policies on the market so you need to make sure you choose the best one.
Firstly you need to decide whether you are taking out term or permanent coverage. In the majority of cases a lot of people tend to lean more towards taking out a term policy. If this is the case then there is one last decision that needs to be made before you can take your coverage out; this is of course what type of term policy you are hoping for.
Term life insurance is one of the most popular forms of coverage and it is easy to see why. For one thing it is the cheapest coverage you will be able to get your hands on. Your monthly premiums will be a lot lower as there is no guarantee that the policy provider will actually have to pay any money out so there is no need to charge you as much as you would be paying if you have a permanent policy. One last reason that is it so popular comes down to the fact that you can decide how long you have the policy for, which could be anything between five and forty years. However most companies will not insure you with term coverage if the term is due to end past your 80th birthday.
There is a number of different term life insurance policies that you can get a hold of, some are more used than others but each of them has their advantages and disadvantages depending on your circumstances. For example you may want to take your term policy out through your mortgage. This is specifically designed to protect your mortgage and is used in accordance with a decreasing policy, which means the amount of insurance coverage you have reduces in line with your mortgage debt.
Another example is convertible term insurance, which means you have the right to change your policy to a permanent one without having to undergo a medical exam. This would however increase the amount you are paying for your coverage. If however it is a no medical policy that you are looking for then you are in luck as, yep you guessed it, you can get term coverage that doesn’t involve a physical exam.
This coverage works in the same way as other term policies for the fact that you can take it out for a certain amount of years; the only difference is with this version of the policy you don’t have to undergo a medical exam before you take the coverage out. Instead you simple answer a series of questions related to your health and family medical history. The only drawback to this policy is it may cost you slightly more as there is no physical evidence to back up whether you are in good health.
One other example of this popular policy comes in the form of re-entry coverage. This is the least expensive type of this coverage as you can purchase it as select rates, which are less expensive than standard rates. Basically every time the term of the policy is up you will need to submit proof that you are still in good health so that you are still eligible for select rates. If you fail to prove that you are still in good health then you will have to continue to pay the amount (premium) on the original Term policy.
Term life insurance provides death benefit protection for a period of one or more years. The death benefit of the policy is paid only if the insured dies during that period. If the insured lives beyond the term period, no death benefit is paid. Typically, there are no cash values or loan values for term life insurance.
The above represent just a handful of the term life insurance coverage that is available to you. There is also coverage such as level, renewable, decreasing and return premiums as well as annual renewable coverage.
If an affordable term life insurance quote rate is what you are after then your best bet to getting the coverage that you need is to look into each of these different policies until you find one that best matches what you need your coverage for. As there is so many to choose from you are bound to find a term life insurance policy that is perfect for you.