What Exactly Is a Term Life Insurance?
A whole life insurance policy lasts for your whole life. You absolutely will die during the policy period for a whole life insurance policy. Although most insurance company will pay you the benefit before you die, if you live to be 100.
Typically, term life insurance provides protection for a period of from one to 20 years. The best way to think of term life insurance is as temporary insurance. A whole life policy is permanent insurance.
Term products usually are used when you have a temporary need, such as a mortgage, business obligations or a particular need for income when your children are young. Whole life products are effective when you have a permanent need, such as to supplement your surviving spouse's income, cover funeral costs, pay capital gains taxes, to make charitable donations and even pass a family business from one generation to the next. For this reason, it is usually the least expensive form of life insurance ad the one most likely to be used by cash-strapped young families. Its low cost allows you to buy higher levels of coverage at a younger age, when your need for protection is often greatest.
Of course, it would be simply if there were only one kind of term life insurance to consider. Instead, there are three. Level term provides a consistent amount of insurance throughout the policy period. Decreasing term, which is a good type of insurance to use to cover a shrinking debt obligation, such as a mortgage, starts with a specified face amount, which decreases annually until it reaches zero when the policy expires. Increasing term provides a growing amount of insurance, but the need for this type of protection is rare.
Some term life insurance policies are renewable. The benefit here is that you don't need to prove to the insurance company that you are still "insurable" to renew the policy. But, each time you renew, the premiums will be higher because you are older and, therefore, more likely to die during the policy's term. Many term life insurance policies are also convertible, which means they may be exchanged for another type of life insurance. Choosing a convertible term life insurance policy is one way to make sure you will be able to get permanent coverage at a later time, without having to prove that you are still insurable.
You won't want to stick with term life insurance for your entire life. By the time you reach 70 or 80 years of age, the premiums for a term policy usually approach the face amount of the insurance, because the insurance company figures you are going to die soon.
For more information on buying affordable whole life insurance policy, getting cheap term life insurance online rates or low cost universal life insurance quotes, please visit the following website: Life Insurance Resource Guide
Related Tags: term life insurance, whole life insurance, online life insurance, affordable life insurance
©Skyjoe. All rights reserved. This article may be freely distributed as long as it remains unaltered inclusive of the active links and the copyright notice. No alteration is allowed without express written permission from the author.
For more information on the different kinds of Gout Pain Relief, Gout Natural Remedy or Best Diet For Gout, please visit the following website: Gout Treatment & Natural Remedy
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- How to Protect your Home and Family with Mortgage Life Insurance
Paying off a mortgage can be a struggle, even for families with two incomes. If you or your partner - The Advantages of Whole Life Insurance
Whole life insurance is a type of insurance policy that, like term life insurance, pays out upon the - Affordable Life Insurance - Why You Can't Beat The Internet Advantage
If you want to get affordable life insurance fast, then you really have one option -- the internet. - Life Insurance Settlements - What You Need To Know On How To File A Claim
For anyone who has lost a loved one, filing a claim for life insurance settlements is not something - Do I Need Critical Illness Insurance?
Critical illness insurance is taken out to cover you either for life or for a set period of time aga - How to Get the Best Rates on Life Insurance in Pennsylvania
Most people never consider that there are actually things they can do that will help them save money - How to Find the Best Rates on Life Insurance in Tennessee
If you aren't looking for free online life insurance quotes in Tennessee, you should be! The online - The Four Types of Term Life Insurance
At first blush, term life insurance seems as though it would refer to just one type of insurance pol - Life Settlements
Exchange Your Life Insurance Policy for a Life SettlementLife insurance policies are taken with cert - How to Buy Whole Life Insurance Online
Buying whole life insurance online is similar to buying any other kind of insurance online. If you'v
Most viewed articles in this category:
- Life Insurance - The Two Types Of Whole Life Insurance Explained
Life insurance is a topic that's incredibly confusing for many people. There are many terms and prov - The Amazing Story of Life Insurance Settlements and Whether or Not They Are Right For You
Life insurance settlements are a relatively new twist by the life insurance industry as a way to add - Keyman, Keywoman, or Keyperson Life Insurance: It's Vitally Important To Your Family & Your Business
Key man life insurance, or as it is more politically correctly known, key person life insurance can - Term Life Insurance Explanation
Brief term life insurance explanation. Life insurance companies offer two basic types of policies... - Is Life Insurance Cost An Important Consideration For You?
Life Insurance cost. When we search for life insurance the cost of the policy is important for most - Get the Best Insurance Policies using Online Term Life Insurance Quote
Did you know that you could apply for an insurance policy sitting at home from your own computer? We - Get Protected: Shattered Dreams Caused By Life Insurance Complacency
Margaret Donaldson sat in the living room of her smart 3 bedroom home near Fulham Road in London. He - Providing The Right Fit With Whole Life Insurance
An initial search of whole life insurance on today's leading search engines reveals a rather negativ - Whole Life-Permanent Life Insurance
Whole life insurance pays a death benefit when you die, there is no specific term. Whether you die i - Affordable Life Insurance - How To Choose One
Low-rate-life-insurance that benefits you There are primarily two basic types of affordable life ins