Let us compare term life insurance, the more popular term policies. You should be more enlightened about term life insurance when you are through. If interested you can then proceed to qualify for your policy through a licensed agent. Your answers are verified by the M.I.B Report and a Prescription Report.
Someone once said that an educated consumer is the best customer. You will be more knowledgeable about term insurance and as a result be more satisfied with your decision.
As most people are aware term insurance is designed to provide a lump sum or income upon the death of the insured. The reasons people buy term insurance may differ somewhat though.
Term insurance costs less than permanent insurance. The shorter the period the cheaper the plan. Cost will also depend on the applicants age, health and occupation.
Short Term Insurance Needs
Let us examine short term coverage, coverage for a short period of time. Why would someone buy short term life insurance and which policies would qualify as short term policies?
5 or 10 year term policies are considered for the short term. These policies may be used to guarantee that a child or grandchild graduates even if the person paying the college costs should die before graduation day.
They are also used to pay off uninsured outstanding debt in the event of your death. You would not want to leave these debts for your loved ones to pay would you?
The face amounts as well as the premiums for these policies are usually level for as you keep you policies in force.
Long Term Insurance Needs
Policies for longer periods of time are usually to provide cash or income to a family in the event of the premature death of the breadwinner. These policies guarantee food on the table and a roof over the heads of the family.
Business people also use these policies to fund buy sell agreements or for key employee life insurance. In every company there is some invaluable employee.
This person has a tremendous effect on the company's profit. The company needs to own a policy on his or her life as it will take a while to replace this employee if death occurs prematurely.
The policies that are usually considered long term are 15 year, 20 year, 25 year and 30 year level term life policies.
Term life insurance premiums are usually quite inexpensive and as a result most anyone can afford a term policy. One thing to keep in mind, the shorter the term period covered the less the policy costs. The policies that last longer cost more as the carrier is at risk for a longer period of time.
When we think of affordable life insurance, or affordable anything for that matter, we often, mistakenly, think of a product that would require the least cash outlay.
Many life insurance buyers find the 30 year term insurance policy quite attractive. It fulfills their needs. Who, what kind of buyer, would buy the 30 year term policy.
The 20 year term insurance policy is probably the most loved and most bought term life insurance policy. The reasons for this are pretty obvious. People tend to think 20 years when planning long term.