|
TERM INSURANCES
Commonly known as a temporary insurance, term insurance
provides a protection for a specified period of time, usually between
1 – 30 years. Term insurances are usually renewable at the end
of each period at the progressively higher rate. Term life insurances
is well suited for young families looking to obtain a large amount of
protection, at a low cost.
People usually choose this type of insurance for the following reasons:
 Cover
Mortgage Expenses
Protection
while children are in school, college or university
Protect
dependents (in personal or business settings)
Term insurance builds no Cash-Value.
At the onset, term life insurance is less expensive than permanent life insurance.
Kind of term life insurances
Renewable: The policy Renews itself
automatically in every year. The premium goes up at the beginning of
every year to reflect the increase in age. There is no need and to take
annual medical exams. This type of policy is usually renewable to age
of 70
Level: the premier is guarantees
to stay the same over a period of time, usually for the term of the
policy, but the guaranteed level may sometimes be shorter than the term.
Decreasing: the face amount (aka
Death Benefit) of the policy decreases over time while the premium payments
stay the same.
Return of the premium (ROP): If the
insured dies while the policies in force, the beneficiaries and will
be receiving the death benefits. If the insured lives beyond the policy
term, the owners are receive the premiums back.
Advantages of Term Life Insurances
Initial
premiums than to be less expensive than premiums of permanent insurances.
Allowed
to buy a lot of insurance when one is young, and when it is needed the
most.
Great
coverage when it needed for temporary periods of time (ie: until
children are finished with colleges, as a protection for a loan).
If
uncertain about the amount of permanent insurance needed to purchase
in the near future.
Many
term insurance policies offer a conversion privilege for a period of
time. This allows the insured and to convert the term policy to permanent
policy without proof of insurability.
Disadvantages of Term Life Insurances
If
you want to continue the coverage after the term expires, it may be
too expensive.
Term
life insurances do not accumulate cash-value.
In
the long run a term like insurance may become more expensive then permanent
insurance
After addressing the pros and cons of life insurance choice comes
down to your personal needs and desires.
Top
Think you're ready to get
a quote?
|
