Understanding Level term life insurance online:
| Posted: Nov 09, 2011
Term life insurance is a type of life insurance that has fixed payments for a certain amount of time, also known as the term. After that term passes, the premium rate is no longer guaranteed. The insured individual will either have to agree to pay higher charges or search for different coverage with other various conditions. If the insured person dies during the term of coverage, the benefits will be paid to the person he or she had named as the beneficiary. Term life insurance is the cheapest way to buy death benefits. It also has the best premium dollar usage over that given specific amount of time.
Original life insurance
When life insurance first came onto the insurance scene, term coverage was the original form. Over the years, many other forms of insurance have been created such as universal life, whole life, and permanent life insurance as well as variable universal life. These types of insurance guarantee coverage for the insured person at a fixed rate for the entire lifetime of the person covered. Term insurance is not popular in estate planning or for those who have charitable giving ideas. Rather, it is used for those who simply want to replace their incomes if they were to die unexpectedly.
Most permanent life insurance policies also have a cash value that has been predetermined. This value exists for the entire contract and insured individuals can withdraw some of the money later in the policy under certain conditions. Some policies read that the only want to get the money out of the policy is to completely cash in the entire policy. Others allow policyholders to take out portions of the money.
Life Insurance as an Investment
Life insurance is a wonderful investment for the future of a family. In the event of an unexpected death, families can replace incomes, pay off debts like mortgages or outstanding credit card bills, take care of final expenses, and plan for college educations in the future. Whole life, universal life and variable universal life policies each offer the ability to build cash value in addition to the death benefit offered.
Term life insurance, however, is not a great way to invest. Financial advisers generally say that term life insurance is a good way to replace an income, but as these policies don't build cash value, alternative investment options will need consideration.
Level Term Life Insurance
Level term life insurance is just what it sounds. The premium levels stay the same over the life of the policy. The policy may come in terms of 10, 20, or even 30 years and the buyer can expect the rates to stay the same during that time. Once they term expires, the rates can change and the buyer can either renew the policy or look for other options. Level term life insurance is great for older people on a budget who do not expect to need the policy for the long term.
About the Author
My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn't have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.
Source:
http://www.articlesbase.com/health-articles/understanding-level-term-life-insurance-online-5379881.html
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