Term life insurance rates

There are a number of different factors that are considered when determining a term life insurance rate. In order to find the best rate, it is important that you understand just what term life insurance is. Term life insurance covers you for a specified period of time. This time is generally between one to ten years. After that time, the insurance policy must be renewed. When compared to a permanent life insurance policy, term life insurance rates are significantly lower, which is why many people choose to purchase term life policies over permanent life insurance policies.

Premiums or rates for term life insurance policies are very inexpensive when compared to permanent life insurance. Those in good to excellent health and under 50 years of age can expect to see very inexpensive rates. After 50, premiums tend to increase more progressively. It is important to note that many insurance companies will not sell life insurance policies to anyone who is older than 65.

Term life insurance policies are more specifically designed for people who want to purchase life insurance protection, but simply cannot afford permanent insurance or for those who need coverage for only a short or specific period of time. Term life insurance policies carry guaranteed death benefits but ultimately have no cash value. It is also important to note that the premiums on a term life insurance policy may increase automatically at predetermined levels such every as 1, 5, 10 or 20 years. Term life insurance policies are an excellent way to supplement permanent life insurance policies during more needed times, such as while your family is growing or when financial responsibilities are high.

As with any life insurance, there are a number of factors that will help to determine what your term life insurance rates may be. In addition to policy and insurance company choice, your age, health and habits can work for or against your premium rates. For instance, if you smoke then you can expect your insurance premiums to be much more expensive than that of someone who has never smoked. You can expect them to be higher as well, for those who are above a certain age, typically 50. If you have pre-existing medical conditions, then your term life rates may increase as well. In order to find a policy that offers the best rates, it is important to compare various companies as well as policies and choose the one that best suits your own individual needs.

It is important to understand that term life insurance offers no benefits whatsoever unless the insured dies. Term life is designed to offer a death benefit only and only for a specified amount of time. Once your term coverage has expired, your protection ends. If you neglect to pay your premiums, your protection ends. It is important to make note of the term of your policy and whether renewal is guaranteed at your current premium rate. Some insurance companies may offer guaranteed renewal rates in which your premiums will never increase regardless of your age or your health.

It is important to understand your policy completely to truly understand what you are paying. With many policies, premium increases are automatic at each term renewal, which can make the long-term cost of the policy much more expensive than a whole life policy. The conversion privilege of your term life insurance policy is very important. This feature is typically only available within the first few years of your policy. It allows you to convert your term life insurance policy over to a permanent insurance policy without having to visit your physician or otherwise submit any evidence that you are insurable. This will allow you to lock your premium rate in at a fixed level so that your coverage can never be cancelled and your premiums will remain the same throughout the life of your policy.

Last updated on May 18th, 2010 and filed under Health Insurance. Both comments and pings are currently closed.

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