Click The Links Below To View The Other Areas Of Life Insurance |
Term Life InsuranceWith term life insurance, think of it as renting vs. owning. Term is just that, a term or period of time. Say you had a 10 year term life policy, that policy is coverage on your life for 10 years. If you do not die during the 10 years the policy matures and so does the coverage.
Term Life Insurance is the least expensive of the two types. There is no cash value in a term policy. It is similar to your auto insurance or home insurance; if you did not get into an accident or your house did not burn down, there is no cash value to the money you spent on the coverage. If you are lucky and live beyond the life insurance term, that was the cost of being protected. That is why term insurance is the least expensive coverage of one’s life. Most policies today allow you to convert your term life policy to a permanent policy before the term runs out without any medical underwriting. The cost of the new permanent plan is based on your age at the time of conversion. The older you are the more costly. |