What is Term Life Insurance?
It is an insurance policy designed to pay a monetary benefit to the beneficiary upon the occurrence of death or terminal illness of the insured. It is done through a written contract or agreement between the policy owner and the insurer. This type of insurance is designed for a specific period of time (and provides coverage at a fixed rate of payments). For instance, under this type, you can purchase a policy to give a kind of coverage for a specific number of years – 10, 15, 20, 25, or even 30 years.
Several statistics suggest that the most preferred length of term life insurance policy is between 20 and 30 years. That is because it gives consumers long guaranteed protection period for their beneficiaries (eg enough time to grow their children or to pay down their mortgages).
Of the many different types of insurance policy program available to consumers today, term-life policy is one of the most popular and is generally considered as the cheapest of them.
Why many choose term life insurance?
A lot of consumers choose to buy term life insurance because they can give their family with the security they need without paying too high. In other words, they can provide insurance and they can save at the same time. And, these savings can be put to other things (eg as additional funds to start a business, income-generating opportunities).
However, it is important to note that term life insurance premiums usually increase as the insured grows older. For instance, a 30-year old insured person that pays $ 300 annually could be paying $ 12,000 per year when he reaches 60 years old. Nevertheless, as calculated by many, it is still a lot cheaper than other types of insurance policy available.
What are the basic requirements?
Just like any other types of insurance policy, term life insurance companies require their applicants to undergo physical examination to determine whether they are insurable with this type of policy or not. However, there are also insurers, particularly in California, who are becoming more and more popular for their programs that do not require physical exams.
Buying an insurance policy that works best to your particular condition could be challenging. Therefore, it is an intelligent idea to rely not just on quotes you generate on the Internet but to personally ask an insurance agent who is an expert in this field.