There are different types of term life insurance available in the market, each policy has its benefit and provides the buyer in different ways.
The decreasing term
This policy is popular with both the mortgage companies and home owners. The benefit of this term life insurance is that if the buyer dies unexpectedly it will pay off his mortgage, another benefit is that its has a low premium, which makes it an affordable policy for the buyer.
The increasing premium term life
This policy is not advisable and not recommended by most of the life insurance agents, no doubt it has a very low premium at the beginning stage but as the name implies, the premium of this policy will increase annually, and in the end the buyer would have to pay through his nose. Although the premiums increase the death benefit remains the same, this is so because the buyer's life span is getting shorter. This is not an ideal policy to purchase but if you owned one it is advisable to convert it into another policy as soon as possible, but before you do this you are advised to consult your reliable life insurance agent.
Five year level term insurance
This policy has a term of five years, within this period the face value and its premiums remain the same, and upon the death of the insured within this period, the beneficiary will receive the proceeds paid by the life insurance company in one lump sum.
Ten year level term life
You may use this to cover a bank loan or for other needs, this ten year term life is basically the same as five year term but the duration is longer. The face value and its premiums are the same and the death benefit is ten years, the buyer can renew the policy upon maturity but with higher premium.
There is 20 year term life or more, for this type of policy has the lowest premium, but it carries no cash value, this means the buyer will not get back any money upon the maturity of the policy, this is not recommended for those who want to purchase a life insurance as saving.
Term life insurance has its advantages and disadvantages, it is better to consult the reliable and competent life insurance companies or the agents, you can get more information by viewing the online life insurance companies, there can provide you with free term life insurance quote as well, know the product before you buy.
It is a good practice to know the product before you buy; there are many life insurance policies available in the market, to find out what are the types of life insurance benefit you or whether you want whole or term life insurance please visit us at http://www.affordable-life-insurance-tips.com/ today. |
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