TERM LIFE INSURANCE

TERM LIFE INSURANCE

Term life insurance means that your insurance policy is only good for a certain amount of time usually anywhere from one to thirty years depending on the coverage you choose Whole life insurance on the other hand is in effect from the day you sign up for coverage until you die or cancel the policy Once term life insurance expires you can usually renew it for another term shop around for another policy or switch to whole life insurance

Each insurance company offers their own type of policies and options but some of the most common term life insurance programs are

This insurance covers you for a set period of time usually 10 20 or 30 years The amount of coverage stays the same for the duration of the policy so your family would receive the same benefits during the first year as the last With some policies your monthly premiums may go up

Decreasing Just like it sounds the value of a decreasing term policy goes down over time However you will typically pay the same amount each month in premiums even though the policy decreases This policy is usually bought by individuals who have a lot of upfront debt that they want to protect their family against

Yearly Renewable or One Year This insurance covers the carrier for only one year but can be continued on a yearly basis usually with the same conditions This can be a good idea for individuals who need life insurance coverage but are not ready to make a longterm commitment to a policy It may also be good for those who have large shortterm debt

Purchasing Term Life Insurance

Before signing on the dotted line for what could be a lengthy relationship make sure you are getting the right coverage Not all term life insurance policies or the companies that offer them are valid in every state Check with your states insurance department to find out which policies are applicable in your area

Many of the countrys largest insurance providers including Metlife State Farm and Nationwide offer term life insurance policies If you are working with a smaller insurance company or are not sure about the reliability and history of an insurance provider you can research the firm through reporting companies like Standard and Poors or AM Best