Term Life Insurance Explained
Term life insurance provides coverage for a specified period of
time - the term of the policy. This term typically ranges from
5-30 years. After the term, you may renew your policy with a premium
adjusted for your health and age. Your policy is paid out only
upon death within duration of the term. Term life insurance is
the lowest priced insurance on the market. It allows you to save
substantially on life insurance and invest the savings in a higher
yielding investment.
Term policies are designed to meet a specific need for a specific
period of time. The most common type today is level term, which
has a level death benefit and a level premium for a specified
number of years. These are commonly used to provide protection
for families until children reach an age where they are independent
and can provide for themselves. It is also useful as an affordable
starting point - you can convert it to a universal or whole life
policy at a later date.
Another type of term life insurance, decreasing term, is generally
sold with a level premium and a decreasing death benefit. One
common use of decreasing term is mortgage life insurance - designed
to decrease at the same rate your mortgage balance decreases.
These types of policies are often offered as riders in connection
with whole and universal life policies, with the whole or universal
life policy providing the "backbone" of your overall
protection plan. An insurance professional can help you find the
best combination for your current and future needs.
See also the
Frequently
Used Life Insurance terms.
Back
to main
For quotes on auto, RV, motorcycle and
boat insurance, please visit
Auto
& Home Insurance & Loan Center,
where you can get competing car refinance quotes too.
For the best in home insurance, visit
Home
Owner Insurance Quotes,
with a list of home insurance and home refinance quote makers.
For companies providing competitive rates on
credit card balance transfers, please go to
Credit
Card Balance Transfer
and find a good variety of MasterCard, Visa, Amex, Discover,
and other credit cards.
