Rates for term life insurance are at their lowest levels in many years; so many experts feel this is one of the best life insurance values you can find. One of the reasons that rates are able to stay so low is due to the low number of claims that result from term policies, which are issued for specified periods.
Life insurance is a product that pays a death benefit in a lump sum to the person or persons listed as beneficiaries on the policy. Other types of life insurance have different components but for a term policy, this is the basic function.
How Long Does It Last?
The length of time that a term life insurance policy is in place is up to you, but often they are offered in 10, 20 or 30-year increments. When the term ends, so do the benefits and no further premium will be collected on that policy. Most term life insurance policies can be converted to a whole life policy. In a whole life insurance policy, part of your premium is invested and builds a cash value. With a term life insurance policy there is no cash value and every cent that you pay in premium goes to the insurance company.
Can Anyone Get Term Life Insurance?
Most term life insurance policies may require a physical examination to determine if you are healthy. Some term life policies are classified as guaranteed issue policies and these do not require any health exam. While a guaranteed issue policy may cost a bit more than other term life insurance policies, they are a good choice for a person who may have a preexisting condition that makes it difficult or impossible to obtain a more conventional term life insurance policy. Guaranteed issue policies are good choices to ensure that mortgages or loans are paid off in the event of the policyholder’s death.
Another type of term policy that is attractive to many people is known as an annual renewable term policy. These policies are renewed each year but they can be terminated if the insurer discovers any health issues with the named insured.
A term life insurance policy is may not be for everyone but it is very affordable and can meet the needs of many people. If you have any questions about your life insurance needs, talk to a professional agent today.