Term life is a type of insurance coverage that is in effect for a designated “term.” The cost of the premium is based on the expected likelihood of that happening during the coverage term. If the insured dies during the policy term, the death benefit is paid to the policy beneficiaries. If the insured dies even one hour after the policy term ends, no benefits are paid.

The insurability of the applicant is the key factor in obtaining life insurance. For instance, if an insured individual is diagnosed with a terminal illness during the coverage term but does not die while covered. Because of the illness, it is unlikely that the provider will renew the policy or issue a new one, deeming the applicant uninsurable.

A policy holder can get guaranteed re-insurability. One type of term insurance that falls into this category is annual renewable term life (ART). The premium is paid for a year’s coverage and comes with a guarantee of renewal every year for a pre-determined number of years.

The premium rate increases each time the policy is renewed, which results in the cost of an annual renewable life policy to eventually exceed that of a regular permanent policy. The policy renewal term can range from 10 to 30 years or until the insured reaches a certain age, generally age 95.

Instead of renewing each year as with ART there are other forms of renewable term life insurance which the renews occur at multiple year intervals. Some people prefer these policies because the rates increase every few years instead of annually when the policy is renewed.

Reasons to Have Annual Renewable Term Insurance

You probably do not want this type of life insurance if you have a business loan you expect to pay off in a couple of years. Renewable term insurance is an option to cover the debt in case something happens to you. You can simply choose not to renew it once the loan is paid in full. Another reason is due to illness as mentioned earlier and it is the only insurance you can get when the term expires.

Decreasing Term Insurance

Something else to consider when your renewable policy expires is decreasing term life insurance. With this, the benefit value of the policy decreases but your premium cost stays the same. Keep in mind, however, that the policy over the long term will eventually become worthless.

Choosing the Right Policy Type

There are things that must be considered when choosing the best policy for your specific situation including your age, health, lifestyle, and the amount of coverage you need. If you are with a company that offers term life only, naturally they are going to do everything they can to sell you that type of policy.

Do some research up front and explore the different types of life insurance policies available, then discuss your options with a reputable and versatile life insurance provider who will help you find the best coverage at the best price that fulfills your needs.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

The more important question that you should be asking yourself at the time of taking out a life insurance policy is that “What is term life insurance and how does it differ from universal life insurance?” The biggest problem that many policy buyers face today is that of “Which life insurance policy should I get?”

Admittedly, it can be confusing and many people do not know the difference between the two. First it is necessary to get rid of any confusion before you decide which is better.

Term life insurance, because it does not build up any equity, generally less expensive than universal life insurance for the same face value amount. It allows you to buy large face amounts with very little money. You will be fully covered for the term that you take out the policy for – but you do not receive any cash payments after the policy is over.

This kind of policy is popular among young people who need large amounts of coverage for their families with lower premium payments. It is also the way to go for those people who want coverage in case of an untimely death and prefer to invest in stocks and other investments rather than save with universal life insurance.

Universal life insurance policies cost much more than term life insurance for the same amount of face value but they usually cover you for a longer time as well as allowing you to build up tax deferred payments. But, however, the premiums with universal life insurance policies stay the same whereas the premiums with term life keep increasing during time.

To provide the holder with some long term investment that the holder can borrow against, one must hold the policy for at least 15 years till you see some return. For those people whose financial planning extends well into the future, this kind of policy should sit well with them.

Make the wrong choice with a policy can lead the surviving family of the issuer or holder without any financial benefits on top of the pain and sorrow of losing a loved one. Choosing the right life insurance policy can be one of the most confusing and challenging decision an individual might have to make. You can, however, avoid your family all this hardship by taking the time to do a little research to educate and inform yourself – or seek some legal help on the matter.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

There are two reasons for choosing level term life insurance. If you want temporary life insurance, level term life is one of the most popular options. Length of policy terms may be 10, 15, 20, or 30 years.

1. Non-Variable Rate

Premiums are set to remain the same for the entire period on the life insurance coverage. There are no surprises or cost of living increases as the years go by. Of course, the coverage takes into account the age of the person over the policy term. The longer the coverage term, the higher the premium cost. A 10-year policy will cost much less in monthly or yearly premiums than a 30-year term.

2. Guaranteed Renewal

Generally, it is expected that investments made during the period of coverage will furnish a nest egg that will pay any necessary costs after the term is completed. That would mean that life insurance coverage after the term would no longer be needed. As with any term life insurance, level term is designed to provide protection for the insured’s family in case the insured dies during the time coverage is in effect.

Level term life insurance gives a guaranteed rate of renewal, although proof may be required to determine insurability for renewal. A renewal insurability clause is usually only enforced if the insured’s health has declined during the term of the policy. Although it costs more to continue the coverage, it is at least possible to get life insurance at an advanced age, even if health problems develop.

Top Choice in Term Insurance

In 2003, level term amounted to 97% of all term insurance policies sold, making level term life insurance the number one choice in temporary insurance. The cost is so much less than permanent insurance, which is why some people feel it is the best choice for affordable life insurance.

USA Today estimates that as many as 11 million households in the United States do not have life insurance coverage on the primary wage earner. Escalating costs for food, shelter, and other necessities have led to a decline in life insurance coverage for many families. In fact, just slightly more than 40% of all households have life insurance covering the wage earner.

At the term’s end you have the option to convert your term life insurance policies to a whole life policy. Those who are later diagnosed with a health condition that would make it difficult if not impossible for them to qualify for a new policy feel that this can be a good option with a preferred term life rating class.

The conversion option may not be available for the entire policy term; instead it may be an option for a specified number of years or until the insured reaches a specified age. Make sure to ask your agent about the specific clauses and conditions of a level term life policy when obtaining coverage quotes.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

When the premium for the policy stays the same throughout the term of the policy is considered a level term life insurance policy. That is, they remain leveled.

Some people may want a short term policy designed to be put into play until the policy holder’s children graduate from college. This is just an example of one of the many factors that you may need to consider when you are taking out level term life insurance.

This policy is unlike whole life insurance. With whole life insurance, the cost increases with time – thanks to its investment aspect. With level term life insurance, the premium and hence the cost of policy remains the same throughout so you know exactly what you’re getting when you buy such a policy.

You must decide on how much coverage you will need before you take out a policy. You need to determine how much your family will require, in case of your death, to remain financially stable. This is in turn linked to how much you make yearly.

Another question you will need to address is how much premium you can afford. Even if you have the advantage of a premium that will stay leveled through the tenure of the policy, you still have to pay it and pay it every month.

The next decision you need to make is that of how many years you want to take out the policy for. It is important to decide for how many years you will require coverage. When deciding how long you want coverage for, consider factors like how long your offspring are dependent on you.

Some insurance companies give you the option of renewing your policy once it expires. You can take out level term life insurance for 10, 20, 30 and 40 years but remember that the longer your time period for the policy, the higher your premium will be.

If you are looking to take out a life insurance policy, then level term life insurance will prove to be a cheaper option when compared to whole life insurance. This is because you get a clear picture of how much you will pay every month without the fear of your premium increasing with time as with whole life. Also, because no portion of your money is allocated to the investment option, you know how much you will get back – which is not the case with whole life insurance.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

The first advantage of term life insurance is the cost when a policy is taken out at a young age. For a very low price, a young adult can provide financial security for their family during a time that is taxing on a budget. As necessary as life insurance is, some people would not be able to afford coverage if not for term life policies.

Options in Term Life Insurance

There are varying life insurance policies that have a flexible coverage based on the needs of the individual. Select Term is a basic choice of 10, 20, or 30 year coverage terms at a set premium amount for the duration.

After the selected term of coverage, premiums generally will increase each year. The policy can be renewed at the term end up until age 95. It can be converted to a permanent policy in most cases regardless of the health of the insured.

If the insured chooses 20 or 30 years of life coverage they are protected under the terms of a Return of Premium policy. So, upon the completion of the term, all premium payments are returned to the insured, so it costs nothing when the person outlives the policy period. The policy acts much like a loan to the insurance company, who uses the money for the time period but offers protection during that time.

Mortgage life coverage is specifically designed to pay off the home mortgage in the event of an untimely death and is often for 15 to 30 years. The benefits decrease the same as the payoff of the mortgage after 5 years.

What is the Purpose of Term Life Insurance?

To protect a spouse from losing a home in the event the major wage earner is out of the picture most people turn to term life insurance. To cover the cost of the home or can be earmarked to pay a specific amount on the remaining principal the amount of coverage can be fixed to large enough figures.

Term life insurance coverage is another reason to protect children’s college education. Without a major wage earners income contribution, higher education might not be possible without term life insurance. Also short-term debts might not be met either for automobiles to transport kids to and from college.

The initial reason for term life insurance was to provide a necessary life protection for those who could not afford to pay the higher premiums of other coverage types. This remains true today for many young couples and even those approaching middle age; the advantage of term life insurance is it offers coverage options for many that might not otherwise be able to obtain life insurance.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

The loss of life often results in a hardship to the surviving family members in three different ways. The first is the anguish and personal loss whenever a loved one leaves this world. While there is very little money can do to relieve the pain of this loss, the other two hardships can be addressed with a life insurance policy.

Funeral costs and the loss of income of the deceased are the hard facts to be dealt with that often accompany a death, and life insurance can be part of the much needed help.

The Basic Concept of Life Insurance

The individual promises to pay an insurance premium for the insurance company’s promise to release funds to designated survivors (beneficiaries) upon the event of the insured’s demise. Simply put, life insurance is a contract between an individual and an insurance company based on what one does for the other.

The underlying theme of all the different formats for life insurance is that the holder of the policy contracts coverage for the express reason of protecting their beneficiaries from monetary losses or hardships related to the insured’s death.

In certain contracts, should the holder of the life insurance policy contract a terminal illness that incapacitates them, benefits may be paid in whole or partial installments to the beneficiary to help cover the cost of health care.

Understanding Life Insurance

Anyone entering an agreement for whole or term life insurance should understand the terms of the policy completely, and the insurance agent should make the details perfectly clear before an agreement is signed. Many variables affect the premium amount and the conditions of payment because the insurance company is at risk from the moment that the contract is officially in force.

Unlike some insurance policies, life insurance is almost a predetermined expense to the insurer. As long as the premiums are paid and there is no cancellation of the policy because the insured commits an act to void it, or any of the exclusions come into play, the insurer will, at some point, pay the benefits.

Default of the Contract

Almost all life insurance contracts have very strict policies about how a death may occur. Exclusions that concern the dangers people put themselves in because of acts they commit, such as involvement in riots, wars, or any type of civil commotion. Suicides and fraud are two of the top reasons for voiding a life insurance policy.

Life is not easy to predict, and it is a comforting assurance to know your loved ones will not be left in a financial hardship in the event of your death because you had the forethought and sensibility to obtain a life insurance policy to protect them.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

A medical exam required by the insurance provider makes many individuals not bother to attempt to obtain quotes for life insurance because they fear they will fail the exam. They may not realize there are policies for life insurance with no medical exam requirement.

What Policy Types Do Not Require a Medical Exam?

1. Simplified Issue Life Insurance -no exam is required, but the applicant provides information regarding their medical history on the policy application.

2. Graded Benefit Life Insurance – There are no health history questions and no exam is required. Graded Life policies are more difficult to obtain than other policies and are intended for those in late middle age and older.

3. Guaranteed Issue Life Insurance -Guaranteed Acceptance means no health history or medical exam required; and no applicant can be turned down.

Why Buy Exam-Free Life Insurance?

The application process can take anywhere from 3-6 weeks before a policy is issued for typical life insurance policies. When no medical exam is required the underwriting process is shortened, making it possible to have a policy issued in hours or days rather than weeks.

Applicants advanced in years or with health problems trying to obtain coverage when they will most likely be denied because of exam-required policies can always rely on no-exam life insurance.

Exam-Free Life Insurance Costs

Life insurance premiums are calculated based on life expectancy. Naturally lower rates apply to applicants in good health and in their younger years. A medical exam gives the insurer a more accurate picture of life expectancy.

Without an exam, the insurance provider is placed at a higher risk which in turn dictates a higher premium rate. While a medical exam can be a hassle and an inconvenience, if you are in good health it is the wiser choice because of the potential rate savings. The exam allows the insurance provider to place you in the right rate class and charge you based on your actual health profile.

No-exam life insurance might be a quick and convenient way to obtain coverage, but don’t expect it to be the cheapest. Think of it this way though, any coverage is better than none, and if you are not seeking life insurance coverage because of health problems or your age, no-exam life insurance may be the perfect solution for your situation.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

Insurance companies are run like any other business. They base their costs to customers on what their expenses are for the service they provide. Whole life insurance is seen as an expense. They have to veiw it as they will likely have to pay a beneficiary at some point, and there is always the risk that they may have to do it sooner rather than later.

Less Exposure

There is less risk to the insurance company with term life insurance because if the insured lives throughout the term, there is no benefit to be paid. Simply said, the insurance company has a much better chance of making a larger profit on term insurance as opposed to whole life.

Term life insurance is seen as a good value to the insured because the coverage amounts can be the same as with other more expensive forms of life insurance plus benefits are paid the same.

Value Accumulation

With whole life policies, the insured can actually have some accrued value in the policy and may be able to take monies from that fund. On the other hand term life insurance does not accumulate value, and when the insured stops paying the premiums or completes the term, the insurance company is under no obligation to give funds back.

Most Economical Coverage

In term life insurance the simple contract insures the person for a designated number of years and ends when that time is complete. No premiums are returned to the insured, and the insurance company retains all the money paid.

A young person getting term coverage for a 10-year period can get very affordable insurance. For each 10-year addition to a term policy, the rates will increase as the risk to the insurer increases.

Practical Term Policy

If rates are attractive enough, putting money into Return of Premium coverage means that it is free as long as the insured lives to the end of the term. Return of Premium is more costly than the base term policy, but it is worth looking into because it rewards the insured with payback of premiums for surviving the policy term.

Life insurance quotes continue to show their value in term policies. Most authorities agree that term life insurance is the best value when compared with all other life policy plan types. This makes it an ideal way to save some money by having the safety of a policy that will aid the family should the worst happen and getting the money back after the term if all goes well.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.