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| What You Need to Know About Term Life Insurance |
When choosing life insurance you'll find several policy types to pick from. Term life insurance is considered one of the most basic of life insurance policies. It is called term
life insurance because it is taken out for a specific period of time or term. The period of time can be extended through renewals. Renewals can be automatic so that there is no need on your part to do anything.
Term life insurance can be obtained just like any insurance policy. The policy remains in effect until you cancel it as long as you continue to make required payments. Once the initial term period is reached you can renew your policy however the rates will likely increase. The best choice for term life insurance is to get a policy term that fits your needs.
For example, if you are young and healthy you may be best off getting a long term
life insurance policy such as 30 years. If you are older and your debts are fewer you may consider a shorter term such as 10 years. Term life insurance is generally available in various terms including 10, 15, 25 and 30 years.
Term life insurance is the most common type of life insurance policy purchased. When buying term life insurance there are two main provisions to consider. Guaranteed renewal is an option that allows you to keep coverage, including renewals, without the need for additional medical examinations. Make sure that your policy contains this clause so that you will stay insured even as you get older. Guaranteed convertible is the other option that you should include in your policy. This gives you the ability to convert your policy to other types of policies later without taking a medical exam.
As you choose term life insurance keep in mind that you'll typically need to undergo a medical exam at the beginning of the policy. This will, in part, determine your policy coverage and costs. Other factors are also considered for your new policy. These include your age, gender, health history and family health history, occupation and tobacco and alcohol use. These risk factors are used to determine how long you will likely live as well as what diseases or illnesses you may be predisposed to. |
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