We have many ways to secure the future of our families after we die. A good particular way to it is with the term life insurance. This type of insurance is getting a lot of attention through the years. the term life insurance is simpler, and its quotes are cheaper than whole life insurance.A term life insurance is a popular type of life insurance. This option can help you secure the future of your family.
While we are getting older and older, one thing comes to our mind: life is valuable. And guess what? It’s. But for many of us, our family is one of the most precious things in the world. It’s true too.
I have been spending a good part of my life traveling, and I know how fast life can go. Life is constantly changing, and the world moves fast. That’s why I’m going to explain what term life insurance is first.
What Is a Term Life Insurance?
The short answer,
A term life insurance is sometimes referred to as “pure life insurance“. It’s a type of life insurance that ensures the payment of a death benefit if the covered person dies under some conditions or specific terms. Pretty simple, right? You must know that the term life insurance can expire. This means that the covered person will not be insured anymore. But don’t worry, this type of life insurance can be renewed too. This is really suitable for a lot of people, you can have all the control over this. Maybe some people see this as a disadvantage.
Types Of Term Life Insurance
Not a lot of people know that there are 4 types of term life insurance:
1. Increasing Term Life Insurance
This type allows the user to increase the policy or death benefits as time pass. The same thing will happen with the term life insurance quotes.
2. Decreasing Term Life Insurance
This one is obviously the opposite of the increasing term. The death benefit is set to decrease over time, and the premiums will do the same thing. This will allow the user to pay less money per month. The idea behind this is “you don’t need a huge death benefit if you have a lower mortgage“.
3. Convertible Term Life Insurance
With this type, you can set it to convert into a whole insurance after this term expires. This one comes in handy if you don’t have a lot of money, but you are sure to recover in the future and don’t want to go around without insurance.
4. Annual Renewable Term Life Insurance
As the name suggests, this type will be renewed at the end of the year with higher life term insurance quotes. You can have a coverage for your life every year.
Term Life Insurance Premiums
The Premiums in insurance are the amount of money you pay every month. In this case, the premiums you pay for your term life insurance quotes are based on the value of the policy. There are a number of factors that can influence the premiums. The things that influence sometimes are your age, health, and gender. For this reason, all insurance companies will ask you to do a full medical check before giving you the coverage.
A lot of companies will ask for your driver records, and if you are a smoker or a tobacco user. What is your occupation and what are your hobbies. They will ask you for your family records too. So it’s pretty impossible to get this type of life insurance without giving your personal information.
The premiums for term life insurance are lower than other life insurance. This is mostly due to the fact this type of insurance only provides a death benefit.
Example Of a Term Life Insurance Premium
In some cases, a person who doesn’t use tobacco gets a term life insurance for 20 years with a death benefit of $250.000. In this case, the person will pay something between $30 and $40 dollars per month.
That’s pretty cheap compared to a whole life insurance.
Term Life Insurance Beneficiaries
A common question to an insurance company is, “What happens with my beneficiaries when I die?”. Well, it’s pretty straightforward. If you die while covered by this insurance, the company will pay the policy or death benefit to whatever you choose as your beneficiary.
Yeah, you can choose a person or two, even a business or an organization to get the money of the policy.