Term Life Insurance
Learn about term life insurance coverage and find out how it works. Review the different types of term insurance available and the benefits of term insurance.
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Term Life Insurance What is term life insurance? Term life is a form of life insurance policy where you choose the duration of coverage. How does term life insurance work? Term life provides you with life insurance protection for a temporary period of time. Usually, coverage lasts for a period of 1-30 years, but the most common lengths of term coverage are for a term of 10, 15, 20 or 30 years of life insurance. If you have a 20 year term life plan and you die during the 20 years, your beneficiary would receive the proceeds from the death benefit of your life insurance. If you were alive after the 20 year term ends, your life insurance coverage would expire, meaning you no longer have life insurance protection. Level term life insurance is the most popular type of term insurance. Level term provides you with protection where the amount of life insurance and the premiums remain level for the duration of your policy. So, if you have a $200,000 level term plan with an annual premium of $200, you would pay $200 each year and your amount of life insurance remains the same ($200,000) throughout the 20 year life of your policy. Why choose term life insurance coverage? Term life insurance is a good option for people who have a short-term life insurance need. For instance, if you have a 30 year home mortgage loan, have children, or are getting married and are on a budget, then term life insurance may offer you the most life insurance at the lowest price, for the period of time you need coverage. Many people with kids, homeowners, or those on a budget choose term life insurance because it can provide the maximum amount of life insurance protection for the lowest cost. Term life insurance offers flexibility of choosing how long you have your life insurance coverage. This flexibility allows you to pay for only the life insurance you need, while you need it. In addition, there are other types of term life insurance, including decreasing term insurance, return of premium term life insurance and term life insurance with no medical exam required. Decreasing term life insurance provides coverage for a set number of years, where the premium remains the same each year, while the amount of life insurance coverage declines each year. This type of life insurance may be another option to consider of you are looking for protection to provide money to pay off your mortgage loan. Return of premium term insurance is life insurance that lasts for a certain term, such as 10 or 20 years, and if you outlive the term of your policy, you get back most of the premiums you paid for your policy. However, the rate you are charged for this type of term policy is much higher than level term insurance. Term life with no exam offers you level term insurance coverage, usually for up to 20 years. You can apply online for this type of policy and are not required to take a physical exam, but there may be some health questions to answer to determine if you qualify for a policy. You can learn more about term life insurance at http://www.term-life-online.com
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