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Life & Health
Term life insurance is a policy that provides coverage to the insured over a certain length of time. This makes this policy an assset to your overall financial portfolio. One key advantage of level term life insurance is that the monthly premiums remain level for the life of the policy (whether it be 5, 10, 15, 20, 25, or 30 years).
The benefits in the different types of life insurance should not be overlooked. Before you buy a life insurance policy you should evaluate the overall condition of your financial portfolio. Yearly renewable term life insurance has a lower initial premium. However, the premium rises each year. Yearly renewable term life insurance is only cost effective for a few years because of the increasing premiums. If you are looking for term life insurance that runs more than a few years then a level term life insurance policy can cost less.
Buying Term Life Insurance Can Be A Good Decision:
For starters, term life insurance will cost less than permanent insurance. A potential buyer may have serveral dependents at home and he/she has to protect his/her income. They may have bought a house and now have a 30 year mortgage for $300,000. In this scenario you can plainly see a good reason to purchase a level term life insurance policy for $300,000 30 year term to cover their mortgage. If something were to happen to the proposed insured between now or anytime over the next 30 years the insurance company would write a check for the full face amount of the term life insurance policy for the survivor. This would allow the survivor to pay off the mortgage and the balance would be paid to the designated beneficiary.
Term Life Offers Conversion Options:
One nice thing about term life insurance is you can consider conversion options, such as a convertible option. A convertible term life insurance policy means that during a specified time you can convert all or part of the term insurance to a permanent life insurance product. If you chose3 this option you wouldn't have to prove evidence of insurability since you were already insured. For instance, if you take out a term life insurance policy your need for the amount of coverage may change down the road. You may still need some life insurance but can afford to lower the face amount of the policy, thereby lowering your premiums when you excercise a coversion option. The conversion option on a term life insurance policy simply gives you the option to convert over a certain amount to cover final expenses.
The attraction to term life insurance is that it can be bought at an extremely low price and can be very beneficial to young families. If you lock in a term rate at an early age while you are young and healthy the rate is guaranteed for the full length of time on a guaranteed level term.
It is also possible to combine term life insurance with a permanent life insurance policy. During the earlier years of the policy you'll have more coverage. As you get older there's a good chance you may not need as much insurance as you originally applied for. For example, the children may have grown up and the house is paid off. So the need for so much coverage is not there and the term insurance will expire. The client will still have the permanent insurance policy that was put in force at the same time the term insurance was issued. Now the client can use the permanent life insurance to pay off final expenses down the road.
Why You Need Life Insurance:
1. Protect your family’s home by allowing them to pay off your mortgage.
2. Allow your family to maintain their standard of living.
3. Give your spouse retirement income and peace of mind.
4. Pay off outstanding debts you have incurred.
5. Save the family business.
Important Benefits Of Term Life Insurance Policies:
1. Term policies are a practical way to receive the most coverage for your dollar amount and can also meet a wide variety of personal and business needs.
2. Term insurance provides protection for a certain period of time (10,15,20,25,30 years) and pays the death benefit to your beneficiary if anything were to happen to you during this time.
3. Many term life insurance policies allow you to convert your policy to a permanent policy within a specific time period.