By Meha Ahmad, InsuranceAgents.com Staff Writer
You may be at the point in your life where you’re wondering if you should be buying life insurance. When shopping around, especially on a tight budget, consider term life insurance. The biggest difference between permanent life insurance and term life insurance is how long the coverage lasts.
If you are ready to invest in term life insurance now, start by comparing term life insurance rates. Determine how much a policy would cost using our easy rates comparison form.
Term life insurance is an inexpensive and basic form of life insurance, providing coverage for a specified period of time. Term Life insurance serves as a temporary insurance policy. It guarantees a predetermined sum of money to a specified beneficiary upon the insurer’s death, should the insurer die during the term. However, when the term is up, so is the coverage. The insurance carrier will not pay the coverage if the insurer dies at any time (even a day) after the term.
How is Term Life Insurance different than Permanent?
Term Life Insurance is distinguished by the following:
What are the benefits for term life insurance?
Term Life Insurance is suited best for needs that aren’t permanent. So it may not be best suited for final burial and legal expenses, or paying your tax debt. But it’s ideal for covering a mortgage or paying back your kids’ student loans.
What are the cons for term life insurance?
Term Life insurance is inexpensive, but the costs increase regularly with each year you age. The cost hike may be annual or periodical.
What kinds of term life insurance are there?
There are three kinds: Annual Renewable Term (ART) is a pay-as-you-go life insurance; Fixed-rate level term life insurance locks the pricing so there are no annual increases; Decreasing Term Life Insurance policies have coverage that reduces annually but the premium stays level for the duration of the term. Talk to your insurance agent to find which type best suits you.
Talk To Agents and Comparison Shop
Now that you know the answers to some of the most frequently asked questions about term life insurance, you are ready to start shopping for term life insurance quotes. When life insurance agents provide you with a term life insurance quote, just be sure to compare similar policies and coverage, and not just the price tag.
Published: Wednesday 17th June 2009
