Affordable Life Insurance Articles

Key Benefits of Life Insurance

Term life insurance is becoming a popular life insurance option for many people. There are several reasons this type of policy is popular. People with young families enjoy the benefits these policies offer. Homeowners wishing to ensure their mortgages will be paid off after their death often choose term life policies for their life insurance needs. Families that are struggling financially but still wish to have the protection offered by life insurance policies are able to easily afford term life policies. Any one with a temporary need for life insurance, be it one year or twenty, often pick term life insurance policies because of the varied term lengths available. Finally, term life policies are generally considered to be the most effective way to get the best life insurance available.

Term life insurance differs from whole life insurance in several key ways, making it more attractive to potential policy holders. As a general rule, term life policies are generally less expensive, by as much a three times, than whole life policies. Because term life policies come in a variety of term lengths there is greater flexibility. Unlike whole life insurance policies, a term length policy will allow a policyholder to customize the length of time the policy will be in effect. Finally, because of the relatively inexpensive nature of term life policies, it is often possible to purchase more insurance protection for your loved ones then with a whole life policy. The benefits of term life insurance policies over whole life insurance policies make them an attractive option for many insurance buyers.

It is not difficult to understand the terms and purpose of a term life policy. For example, a ?300,000 level term life policy for 20 years means that should you pass away before the end of the twenty year term, your beneficiaries will receive ?300,000 in death benefits. This policy may have an annual premium of ?300, meaning for each year of the twenty year period, you will pay ?300 to continue the coverage. At the end of the twenty year term, the policy will expire. You will no longer have coverage. If you pass away after the term expires, your beneficiary will not receive your death benefits.

As an additional feature, many term life policies offer policyholders an option to renew their policies. This renewal will not require an additional physical medical exam. The premiums on a renewed policy will be higher then the original premiums depending on how much the policy holder has aged.

While the most popular type of term life insurance is level term life insurance, a policy type that offers policy holders a guaranteed rate with coverage for as many as thirty years, there are many options available to the consumer looking to purchase term life insurance. Young families, who may be struggling financially, homeowners and those with short term life insurance needs, will find term life policies ideal. Their inexpensive nature allows for the maximum coverage for the least expense. Term life insurance is an excellent option for life insurance.

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