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Term_Life_Insurance_Coverage_Is_A_Good_Deal

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					Term Life Insurance Coverage Is A Good Deal

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394

Summary:
One financial product that is significantly cheaper than things like gas
and food these days is term life insurance. It is estimated that term
life premiums have fallen 30% or more in the past 10 years. Can you
imagine buying gas at the same price you paid 5 years ago? It doesn't get
any better than that.

Why Is Term Life Insurance Cheaper?

As people are living longer term life insurance companies will have fewer
claims in any given period. Add in competition and you wi...


Keywords:
term life insurance coverage


Article Body:
One financial product that is significantly cheaper than things like gas
and food these days is term life insurance. It is estimated that term
life premiums have fallen 30% or more in the past 10 years. Can you
imagine buying gas at the same price you paid 5 years ago? It doesn't get
any better than that.

Why Is Term Life Insurance Cheaper?

As people are living longer term life insurance companies will have fewer
claims in any given period. Add in competition and you will see why you
can get a great price for your term life insurance protection. Term life
covers you for a specific period, normally 10 or 20 years, is simple to
uinderstand and it is easy to compare the price of one company to
another.

But Do You Need Term Life?

Children don't need life insurance, but parents with young children need
a lot of term life insurance as the cost of bringing up and educating
children mount every year. For 90% of people, term life is what they
should buy. Term is simple and cheap and it provides coverage for a lot
of personal needs that will fade away over time. Term life does not have
lots of bells and whistles which is why it is cheap. If you die, your
beneficiaries get the money.

How Much Term Life Insurance Do You Need?

Some brokers suggest 7 times annual earnings; others say 10 times. The
best way is to look at your own family situation. Who do you want to
protect in case you pass away early? Many people need term life insurance
to cover the mortgage, college bills and other family needs. Then, how
much annual income will your family need on a day to day basis?

What Sort Of Term Life Is Recommended?

Mostly recommended is level term life insurance where the premium remains
constant. Most life insurance companies sell this level term life
insurance and increase the premiums after the first 10 or 20 years has
expired.

Term policies can run 10 or 20 years or to age 100, with the 10 and 20
year term being the most popular. If it turns out you don't need the
policy for that length of time, you can drop some or all of it.

Finding a good online broker to do the shopping for you is more than half
the battle in getting the best deal for your term life insurance
coverage.