Term life insurance in general. The simplest of all life insurance to understand and the cheapest to buy: Term life insurance provides death benefit protection without any savings, investments or "cash value" components for a long period of coverage.
Life insurance is available for set periods of time as in 10, 15, 25 or 30. With the "annual renewable term life," your policy is automatically renewed each year and the premium increases as you get older. Select the "Level term insurance" if you want your premiums to remain the same during the policy. Also available is the "decreasing term insurance," in which the premium remains but the decline in mortality rate your benefit from time to time. This is great if you want to only include certain debt to decline, such as mortgages or business loans.
As long as you pay your premiums, the company cannot cancel you.
Term life insurance is a popular choice because of the long rate-guarantee periods and because of the ability to get a low cost life insurance policy. However, if you get to the end of your policy term and still need life insurance, you'll need to shop for a new policy, which will then be priced based on your older age and health status.
Choosing an initial rate-guarantee period is easy: Match the period of time your dependents need your income to the available rate-guarantee periods. For example, if your children are young and you have decades to go on your mortgage, try 30-year term life. If your children are leaving the nest and your home is paid off or nearly paid off, 10-year term might fit the bill.
No comments:
Post a Comment