subject: What Is Term Life Insurance Coverage? [print this page] Term life insurance, when compared to other types of life coverage is one of the most recommended. There are many reasons for this. For one, it is usually the least expensive and despite the low monthly cost can have very high face amounts. It is preferred by many who want it to ensure that their family will manage financially after their death. Term insurance also has several plan models available and that allows the individual a great deal of freedom as well as flexibility.
A term policy can be taken for just one year, or even as long as ten or twenty years. The two most popular policy lengths, though, are the seven and ten year plans. Even though you can buy a term policy that is paid annually and can be renewed after the end of each year, it is better to go with a longer term. This is because the premium increases by a certain percentage each year, whereas with a longer term policy the price is guaranteed to not change over the term of the life insurance plan.
However, term life insurance should not be seen as an investment. Even though the premium paid for other policy types of life policies, such as whole life or variable life, goes in part towards building a cash value that may one day be paid out, term plans are different. With this type of plan, all the money paid each month goes towards insurance coverage and nothing else.
Although the benefit of term life insurance only the death benefit, this shouldn't be viewed as a negative. Term life insurance is generally the most inexpensive of all life insurances to purchase and that means that the monthly installment is very affordable. As a general rule, the premiums for a term life policy are just a fraction of what it would be for a whole life policy even if the coverage amount is the same.
The younger a person is at the time a plan is started, the more inexpensive the premium will be. Life insurance companies use other factors such as gender to determine how much a policy will be for a certain amount of benefits. This includes how healthy an individual is at the time the insurance coverage is started, whether or not the person smokes and if they are obese.
Before a company will issue coverage, the person applying for a term life insurance coverage will often have to provide the results of a recent physical examination. For this reason healthier individuals will get better rates. Life insurance, however is much easier to qualify for than other insurance types insurance. This means that a person who is heavier, smokes or who needs prescription drugs should not think that they won't get approved for a life insurance policy. Most people qualify for a life insurance policies .
One great way to find out what insurance policies are available to you is probably to request rates on the Internet. You may be surprised by how little the right insurance plan can cost.
by: Alston Balkcom
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