Term Life insurance is one of the many forms of life insurance and is by
far the most popular policy sold today. Term Life insurance allows you
to get a large face value of life insurance for a much smaller premium
than whole life. This is due to the fact that you will not get any of
your premium back later. Once you policy expires, your contract with the
insurance company is over.
If you or the named insured dies while the term life insurance policy is
in effect the life insurance company will pay the beneficiaries the
amount of life insurance that you had in effect the day you died. Many
term life insurance policies have two year waiting periods or exclusions
for any death that is self caused or inflicted.
Term life insurance is a great policy for young people and couples
starting out because the premiums are cheap and most people can afford
some type of term insurance. When you are young the premiums are very
low and if you do not smoke, they even get cheaper. When you get older
and the statistics show that you may be close to the passing age, your
term insurance premiums will be higher to adjust for the insured risk.
Term life insurance policies are offered by many different insurance
companies and it is always a great idea to get the advice of a
professional insurance agent when you want to compare policies. You can
also do some searching and research online with the many different
broker companies that will allow you to see what the top rated health
applicant will pay if they get a certain amount of term insurance.
From my experience, I have found that I have never qualified for the
best health premium even when I was in great shape and did not smoke.
Why? Who knows and believe that some folks will get the best premium
prices while the majority of us will pay a different fee for the term
The term insurance policies are also very popular when setting up
insurance trust to help with estate taxes. Consult with you tax planner
about insurance trusts and if they could be right for you.
One of the keys to obtaining a good term insurance policy is to pick a
good company that will be in business when and if you ever need to claim
on the insurance policy. Not all insurance companies are the same when
it comes to financial strength and their ability to survive a downturn
in the economy.
Right now we have seen our economy become very weak and soft with many
assets loosing their value. Well, this affects the insurance companies
as well because they invest your premium into these investments, real
estate, stocks, bonds and other asset classes.
Term insurance is one of the best ways to protect your family in case
you die for very little money and effort. Usually, you will have to take
a physical for larger insurance policies and they will usually send a
nurse out to your home or office to perform the physical and take your