|
Life Insurance Policy
A life insurance policy that is in force for a specific number of years is a term life insurance policy. For instance you can buy a 5 year, 10 year, 15 year, 20 year and 30 year term. If the policy is guaranteed term, then the premium is guaranteed for a specified number of years, after that you may keep the policy but the rate will go up each year thereafter. An example would be 20 term where the premium stays the same during
the first 10 years and then goes up every year after that.
Guaranteed Level Term Insurance
Guaranteed level term means the premium will remain the same for the entire term of coverage. It is safest to buy guaranteed level term because we never know what the future will bring. If you have anything but guaranteed level term you may not be able to afford the premiums during the latter years of the policy. Many people at this point tend to drop the coverage and end up with no life insurance at all. The cost difference is small and definitely not worth it to skimp on non-level term.
Life Insurance Death Benefit
Choose how many years you expect to be holding debt, this will deter- mine how long your term life policy should be. Another factor in deter- mining life insurance needs, is if you wish to leave a death benefit,
over and above any outstanding liability left behind. This can have an effect on the length of the term insurance policy and the amount of
death benefit payable.
Recommened term life insurance policy site.
Insurance Information
|