| By Kerry Phelps
Have you always wanted to learn about life
insurance, but, for varying emotional reasons,
were sort of afraid to ask and take the time
to get into it?
Here are a few facts to skim and become familiar
with, that may help you to take the next step
towards purchasing some form of life insurance.
One form of life insurance that is very popular
and may be right for you is called Term Life
Insurance. Term Life Insurance provides death
protection for a stated time period, or term.
Term life insurance is perhaps the simplest
form of life insurance. It was developed to
provide temporary life insurance protection
on a limited budget. Since term insurance can
be purchased in large amounts for a relatively
small initial premium, it is well suited for
short-range goals such as life insurance coverage
to pay off a loan, or providing extra life insurance
protection during the child-raising years.
In most states and three Canadian provinces,
many insurance companies offer term insurance
policies in most states and in some Canadian
provinces, as well. These policies usually provide
level premiums for 5, 10, 20, and 30 year periods
and can be renewed or continued at higher premiums
in most states to age 85 or 95 as stated in
the policy (age 80 in New York).
Features of Term Life Insurance
Initial affordability
Adjustable premiums: Term life insurance policies
have adjustable premiums. This means that the
insurance company may raise or lower premiums
at some point specified in the policy based
on projected changes of investment earnings,
mortality experience, persistency, and expenses.
However, premiums may never be raised above
the maximum premiums stated in the policy.
Renewability: Level term policies allow the
policyholder to continue coverage past the original
coverage period of the policy. Each time the
policy is renewed the premium increases to the
amount for the then attained age of the insured.
This right is usually offered for a specific
period, which varies depending on the type of
policy.
Conversion: Insurance term policies are convertible
to age 75 in most states. Conversion allows
the policyholder to exchange a term life insurance
policy for any permanent life insurance policy
offered by the Company at any time while the
policy is in force (subject to established policy
minimums).
Kerry Phelps writes about various types of
Life Insurance for Americo and is a VP at HoldOnForLife.com.
Visit http://www.HoldOnForLife.com for more
free articles and information on life insurance.
This article is available for reprint in your
ezine, website or ebook. You MUST agree not
to make any changes to the article and the RESOURCE
BOX MUST be included.
|
