shopify analytics ecommerce
tracking

Term Life Insurance Explanation

 Vital Information On Term Insurance

Brief term life insurance explanation. Life insurance companies offer two basic types of policies...term life insurance and permanent life insurance. By far the simplest in structure are the term life policies.

They are also favored by most people today because of cost. They are less expensive than permanent policies. That results with you being able to buy more life insurance for your dollar. That makes sense since life insurance was designed to protect your loved ones in the event of your death.

Let us therefore look at detailed term life insurance p0licy explanations. How do these policies work?

Term life insurance provides death benefit protection for specified periods of time. The periods range from 1 year to 25 or 30 years and some even up to age 65, age 80 or age 90.


Can you think of anything more important than your Family's Security? What would happen to Your Family if you died? Would they be provided for? Compare Quality Life Insurance Quotes from Quality Carriers and Save. Click Here To Learn More


Term Life Insurance Explanation - Policy Types

1 Year Term

The one year term policy is more popularly known as the yearly renewable term policy or the annual renewable term policy. As the name implies it provides a death benefit for a very inexpensive level premium for one year.

The reason it is thought of as a one year term policy is that even though you can renew it there is a premium increase each tear if you choose to do so. For the first 5 years or so, even with the increase, the premiums are still quite inexpensive. After that period it can get quite expensive.

Upon your death the full face amount will be paid to your loved ones, regardless of how you die other than by suicide. If you should commit suicide within a certain number of years, usually 2 years, from the date you purchased the policy the death benefit will be limited to the premiums paid.

If you committed suicide after that 2 year contestable period the full face amount of the policy will be paid.

If you buy any these policies you have the option of converting to a permanent life insurance policy within specified periods of time.

5 Year Term

Now let us look at a 5 year term life insurance explanation. The 5 year term life insurance policy is considered by this author to be a better deal than the one year term policy even though it costs a little more in premiums. The reason for this conclusion is that the premiums remain level for the entire 5 year period.

This policy has a level death benefit as well which is paid upon the death of the insured. This type of insurance can be purchased as a separate policy but some companies also sell it as a rider to a permanent policy.

10 Year Term

Another participant among inexpensive short term policies is the 10 year term policy. Let us examine a 10 year term life insurance explanation. This policy is very similar to the 5 year level term policy but the premiums are a little more costly. You can keep this policy up to 10 years and the death benefit is paid to your loved ones in the event of your death.

15 Year, 20 Year, 25 Year And 30 Year Term.

The main difference between the two policies described above and 15 year, 20 year, 25 year and 30 year term policies is that these policies can be kept for longer periods of time. The face amounts and premiums are level throughout with these policies.

In some companies, however, the premiums of the 20 year term, the 25 year term and the 30 year term policies increase every 5 years. The first increase sometimes kick in after 5 years but in some cases the first increase occurs in 10 years.

Riders

Since I am giving you a term life insurance explanation I perhaps would be very remiss if I didn't mention riders that can be added to your policy.

Most life insurance companies allow you to add a waiver of premium rider to most any policy which says that if you should become disabled for usually a minimum of 6 months the life insurance company will step in and waive your premiums for as long as you are disabled even if it is for the rest of your life.

The accidental death benefit rider provides that if you should die in an accident the life insurance company will pay your beneficiaries twice the basic death benefit. If you therefore have a policy for $100,000 the life insurance company will pay $200,000...double indemnity.

I sincerely hope this brief term life insurance explanation will help you make a decision whether or not this type of life insurance would fit your needs.


Want to protect your family with life insurance? Take a Free look at Top Quality Life Insurance Quotes from a Highly Rated Carrier and Save. Click Here For More Info


Home | Articles | Life Insurance Articles | Term Life Insurance Explanation | Universal Life Insurance | 5 Year Term Life Insurance | 10 Year Term Life Insurance | 15 Year Term Life Insurance | 20 Year Term Life Insurance | 25 Year Term Life Insurance | 30 Year Term Life Insurance

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  1. Term Life Insurance - Everything You Want To Know

    Term life insurance is life insurance in it's simplest form. These policies stay in force for a specific number of years, for example, 5 years 10 years etc.

    Read More

  2. Whole Life Insurance Options - Basic And Alternative Whole Life Plans Explained

    Whole life insurance is the plan of choice for many people. There are many variations to this plan.

    Read More

  3. Universal Life - Extending The Possibilities

    Universal life insurance was designed with the express intention of combatting the venerable whole life insurance policy.

    Read More

  4. Term Insurance Quotes - Prepare Before You Get Quotes

    Are you looking for quality term insurance quotes? Have you determined how much you need? Do you know what type of term insurance is best for you?

    Read More

  5. Term Insurance Online - Buy Term Life Insurance Online

    In many cases it is a good idea to buy term insurance online. Some people know just how much life insurance they want to buy before they get online.

    Read More