Affordable Term Life Insurance

Very Basic Term Life Insurance Explanation

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Affordable term life insurance is fairly easy to find. I am guessing, however, that you would not only want an affordable life insurance policy but you really want the least expensive and best policy you can find. Let us first look at what term life insurance is all about. The whole concept of term life insurance is to provide buyers with life insurance with no bells and whistles added. Affordable term life insurance is basic insurance for a specific period of time at minimal premium cost.

• Decreasing Term Life Insurance

  The premiums you would pay for this policy are very low cost premiums with little or nothing added on. You are simply paying for a policy the face amount of which decreases each year in a fairly uniformed manner. This is very inexpensive term life insurance. This policy is usually used to pay off any amount owed on a mortgage on the death of the owner of the policy.

• Annual Renewable Term Life Insurance

  This policy is very pure insurance with an very affordable life insurance premium. It is really a one year term policy with an option to renew at the end of each year without having to prove you are in good health. The initial premiums are very inexpensive, however, they increase every year. The death benefit stays the same for the duration of the policy.

• 5 Year Term Life Insurance

  This is very basic life insurance with an inexpensive level premium for 5 years. The face amount is also level throughout the life of the policy.

• 10 Year Term Life Insurance

  A favorite of many this affordable term life insurance policy, which is sometimes sold as a rider, has a level death benefit and is convertible to a permanent policy if the owner should desire to do so. The conversion period may vary from company to company. The premiums, following the tradition of term insurance, are level and very cheap. It also has a level face amount.

• 20 Year Term Life Insurance

  This policy even though it costs more than the aforementioned policies can also be considered affordable term life insurance. The premiums are level for the entire term period and so is the face amount. It is important to note that you can keep it for 20 years without converting to permanent life insurance. Each life insurance carrier sets a specific time period within which this policy must be converted if this is your desire. The conversion period may be 12 years or 15 years for example.