Term_Life_Insurance_Rates

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					Term Life Insurance Rates

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455

Summary:
When you decide to invest in life insurance you need to compare rates for
your individual needs from various companies.

Premiums on permanent life insurance policies are guaranteed never to
increase beyond the rates outlined in the policy, even though the cost to
the insurance company for providing the coverage will not be known for
many years. Due to this uncertainty, premiums must be set at a
conservative or higher level which ensures the company's ability to pay
the ben...


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Article Body:
When you decide to invest in life insurance you need to compare rates for
your individual needs from various companies.

Premiums on permanent life insurance policies are guaranteed never to
increase beyond the rates outlined in the policy, even though the cost to
the insurance company for providing the coverage will not be known for
many years. Due to this uncertainty, premiums must be set at a
conservative or higher level which ensures the company's ability to pay
the benefits, regardless of the future considerations.

Term Life Insurance Is Different

However for term life insurance, this is not the case as   usually the
periods of coverage are for a fixed period of years, for   example 10
years. If you take such a policy, you would then need to   renew it at a
higher premium. And you need to remember you may have to   undergo a
medical exam at that time as the company regards this as   a new term life
policy.

But the good news is that in Canada, you can buy a "Term 100 year" policy
which takes you up to that age at a fixed premium. It's more expensive
than a "Term life 10 year" or a "Term life 20 year" policy but except for
older ages, it it still less expensive than whole life insurance.

The Cost Of A Term Life Insurance Or Whole Life Policy Is Determined By
Three Basic Factors:

Mortality. The life insurance company initially assumes a certain
projected rate of mortality for the lives of those insured. This rate
varies with age, product, sex, health and number of years from the issue.
Expenses. The insurance company projects future operating expenses, such
as policy acquisition costs, company operating expenses, and other costs
of doing business.

Investment Returns. The insurance company initially projects a rate of
return on its investments, usually based on current economic conditions.

Smaller term life or whole life insurance policies do not necessarily
require the insured to take a medical exam; just supply some medical
information.

Some Keys To Getting Low Term Life Insurance Rates

Non smokers pay half the cost of term life insurance than smokers.

Sometimes losing weight can lower your premiums. If you are overweight,
find out what weight will lower your premium.

Only about 11% of the public actually qualifies for "preferred" rates -
most people pay standard rates.

If a health condition causes you to pay more for insurance - insist on
being told the exact reason. Discuss the reply with your doctor to find
out if it is accurate.

Remember the only way to find a low life insurance rate, is to find an
independent life insurance broker who does the "shopping" to get you the
best possible rate for your whole or term life insurance policy.