What Is Term Life Insurance?

There are two different types of life insurance, term life insurance and permanent life insurance. Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years. If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy. You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans.

This plan is merely a "quick fix." It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing term life insurance because you need protection now but can't afford the higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

Although this type of coverage is less expensive than permanent life insurance your premiums will increase at renewal periods as you grow older. Normally at renewal periods you will also be required to obtain a physical in order to qualify for the lowest rates.

There are four different types of term life insurance policies one of which is renewable term insurance. This policy will delete your need to submit to a physical when renewing your policy. The company agrees to renew your policy even if your health has declined however, be prepared to pay higher premiums with each renewal when purchasing this plan.

Convertible term insurance will allow you to switch from term to permanent life insurance without succumbing to a health exam first. Of course this convenience will more often than not come with the expense of higher premiums. On the bright side once you convert to permanent your premiums will not increase as with the renewal of the term plan.

Level term insurance presents a permanent premium for a pre-determined number of years, usually 10 or 20, and the death benefit remains the same. With this policy you will lock in a particular price for the duration of the policy. The down side to this plan is that the rate will rise significantly if you decide to renew with subsequent level policies.

The remaining plan is the decreasing term insurance policy. Throughout the term of this policy the death benefit will decrease. You may start out with $250,000 worth of coverage however for the first 10 years each year your benefit will be reduced by $10,000. The premiums on this policy will also vary over the term of the policy, it is for these reasons that this policy is not highly recommended nor sold very often.

Timothy Gorman is a successful Webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers free money saving auto, home, health and life insurance quotes that you can research in your pajamas on his website.

---

Taking The Mystery Out Of Long-Term Care Insurance

Here's the good news: with improvements in medical technology and healthier lifestyles, people are living longer. Life expectancy today has increased to 83 years, up from 78... Read More

Underinsurance Can Spell Disaster For Homeowners

Insurance is meant to give homeowners peace of mind, but an increasing number of policy holders are putting themselves at risk by neglecting to insure their home... Read More

Term Life Insurance Quotes for Singles

Term life insurance quotes are rarely a concern of single people, but they should be. Unfortunately, there is a misconception that term life is something owned only... Read More

Health Savings Account (HSA): Do I Lose It At the End of Each Year?

The Health Savings Account (HSA) is an amazing tool to reduce healthcare expenses and insurance costs.  But do you lose it at the end of each year,... Read More

Six Crucial Insurance Claim Possibilities

There are DOZENS of insurance claim possibilities which will increase the dollars awarded you in the settlement of your personal injury insurance claim. Some of them rarely... Read More

Insurance For The Self Employed And Those Seeking Health Insurance

First of all, congratulations on deciding to go out and make it on your own. The rewards and excitement of making it on your own can not... Read More

How Do I Calculate How Much Life Insurance I Need?

Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company's obligation to pay the recipient of your... Read More

Self Employed Health Insurance - Tips For Getting Cheap Health Insurance When Youre Self Employed

If you're self-employed and facing high health insurance bills, there are a number of things you can do to make your health insurance premiums cheaper once you... Read More

Why Bother With Farmers Auto Insurance?

Farmers auto insurance is a very large insurance company that offers all types of coverage including car insurance. The insurance policies cover many things concerning insurance on... Read More

Insure Your House

When we talk about insurance the thing you have to remember is that always the price of your house must be higher then the value of the... Read More

Life Insurance Benefits

Life Insurance is a legal contract between you and a life insurance company with the purpose of providing an income to spouse, children or other beneficiaries in... Read More

Seven Steps to Filing Your Car Insurance Claim

Having even a teeny-tiny car accident can be one of life's least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of... Read More

Term Life - Who Needs It?

If you've read any of the books or articles by popular personal finance gurus you've probably heard of the affordable life insurance alternative called Term life. Term... Read More

Filing Homeowners Insurance Claim Forms: What Steps to Take

Filing a homeowners insurance claim can be done with ease if the proper procedures are followed correctly. Periodically reviewing your insurance policy and keeping up to date... Read More

The Great Value Of Accident Photographs

You were humming along on a bright and sunny day when suddenly Fred Fuddle, a local character from a nearby town, drunk as a skunk and zooming... Read More

Cheap Car Insurance ? 7 Tips To Reduce Your Car Insurance Costs

With the cost of car insurance becoming more and more of an issue for the average American family, there are increasing numbers of people looking for cheap... Read More

Car and Home Insurance Northern Ireland

Don't skimp on insurance. This probably doesn't sound like a way to save money. But keep in mind the purpose of insurance is to transfer to an... Read More

Health Savings Account (HSA): Helpful for Older People?

The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on... Read More

Compare Car Insurance Companies Before You Commit

If you want to save money on your car insurance, compare insurance companies before you sign up for an annual premium. Car insurance premiums can differ as... Read More

Individual Health Insurance Plans - How To Find The Best Provider Online

Whether you are self-employed or a small business owner, finding an affordable individual health insurance plan has gotten easy with online health insurance providers. By comparing quotes... Read More

5 Steps To Cheap Car Insurance Premiums

Although car insurance is compulsory, it's not necessary to pay more than you have to. A few simple steps combined with some time surfing for competitive car... Read More

What Does Buildings Insurance Cover?

You will find that your lender will insist that you have this cover when you take out a mortgage. The lender, remember, owns your home until you... Read More

Life Insurance Fears Post the London Bombings Tragedy

Following on from the tube train and bus bomb attacks in London there was a move from several UK insurance companies to reassure victims that claims would... Read More

What To Do When You Suffer An Injury On The Job?

For over 30 years I have been representing injured workers in workers compensation proceedings and there are some basic errors that injured workers make time and time... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs, temporary health insurance may be just what you are looking for. As the name suggests, this short... Read More

Choosing Long-Term Care Insurance

A little over sixty percent of the folks who reach 65 years of age will need some long-term care. The average nursing home stay ranges from 2-5... Read More