Truly Affordable Life Insurance

Affordable Term Life And Permanent Insurance

• 30 Year Term Insurance

Because of the great competition between the life insurance companies and the resulting decreases in premiums the 30 year term life insurance policy can be categorized as affordable life insurance. This is a good thing as 30 year term is considered a good replacement for the whole life policy. It is much cheaper than whole life and is quite affordable. The premiums remain level for 30 years. If you examined mortality tables, used by actuaries use to determine premium rates, you would notice that the mortality costs for the 30 year term is a little high in the initial years, however, it averages out nicely over the 30 year period. The death benefit is guaranteed to remain level for the life of the policy.

• 20 Year Term Insurance

Another plan that some consider to be affordable life insurance is the 20 year term insurance policy. This is similar to the 30 year term but only for a shorter period of time. It contains quite an inexpensive guaranteed level premium for the 20 year period. The guaranteed face amount also remains level. The death benefit can be paid in one lump sum or in the form of a monthly income. This is one of the most liked and most bought policies.

• 15 Year Term Insurance

Some life insurance companies sell a 15 year term policy which is also affordable life insurance for many people. With the better life insurance companies the premiums are level throughout the life of the policy. The death benefit for this policy is guaranteed to stay level for the duration. This can also be paid out in the form of a monthly income but most people take the money in one lump sum.

• 10 Year Term Insurance

People used to buy the 10 year term policy much more than they do today because of the low premium. Although this policy is for a fairly short period it is still very popular. As with most term policies you have the option to convert the policy at any time during its life without evidence of insurability. This is truly affordable life insurance. It has a guaranteed level death benefit and also a guaranteed level premium.

• 5 Year Term Insurance

Affordable life insurance does not get much better than this. The only problem is the short duration of the policy. You, however, have the option of converting the policy to a permanent type of insurance during the 5 year period. Even if your health has deteriorated since the date you purchased the policy the insurance company has to convert it at your request. The death benefit is level for the duration and so is the premium.

• Yearly Renewable Term Insurance

The yearly renewable term life insurance policy is initially a truly affordable life insurance policy. As a matter of fact it is cheaper than all of the above life insurance policies in the initial few years. This is insurance in it's purest form. The premiums increase every year. You are paying what the insurance really costs each year. The problem is that after a few years the costs can be prohibitive for most people. In later years it turns out not to be affordable life insurance any more. It has a level death benefit.

• Whole Life Insurance
Whole life and it's derivative policies are considered expensive life insurance by most people. Some people, however, do consider them to be affordable life insurance policies. The truth depends on how you look at this policy. If you have the additional cash to put into your policy it may be worth it in the long run. Whole life policies have guaranteed cash values on which you may earn dividends. Dividends are not guaranteed. If you buy your policy from a company that performs well you could end up getting back all the premiums you put in the policy if you don't die. This can work out to be quite a good deal for you.

The nay sayers argue that the extra money put into whole life would give you a higher return than had it been put in other investments. That is quite possible or even likely. Bear in mind that many people will not invest the extra money and if they do it is also possible that the investment may or may not be profitable. The whole life policy has a guaranteed death benefit, a guaranteed level premium and a guaranteed cash value. I repeat, this may be considered affordable life insurance for some.