Business

A Variety Life Insurance

Comments Off on A Variety Life Insurance 25 October 2011

Term life insurance is an insurance policy that will pay a lump-sum benefit to your loved ones or some other beneficiary of your choice, if you pass away while the policy is in effect. Term life insurance is actually a temporary policy, meaning that the policy is bought for a certain term, then ends. Anyone with dependents, such as spouses, children or other relatives they support financially, should consider getting term life insurance. If you do not have any dependents, but do have debt, you may want to consider having a policy so that your estate can clear your debts and pay any sort of taxes owed. This will allow your beneficiaries to get the property that you planned them to have.

There are two main kinds of term life insurance policies: Annual renewal term: This is simply what it sounds like: you must renew your policy on a yearly basis. Every time you renew your policy, your premium will be recalculated based on your actual age, health and other factors. This means that your premiums will go up every year dramatically. This is a good option to consider if you’re young, in good health and need the most affordable coverage that you can buy. Level term: With such type of coverage, your premiums will not increase during the duration of your policy term. Accordingly, the premiums will first be higher than they would if you were to buy an annual renewal policy, but by the end of the term they would be considerably lower than they would be if you had renewed your premiums annually over the same term.

When deciding how much coverage to get, the general guideline is that you must buy about 10 times your yearly income. For example, if you make $50,000 a year, you need to get approximately $500,000 of insurance coverage. If your husband or wife or other dependents have unusually high expenses or a lot of debt or will be incapable of genereating their own income, you will likely need a lot more insurance coverage. You are likely to need less coverage if you reside in a house you own, have not much debt and have dependents that are able to return significant income by themselves.

The length of term you need to buy depends on your personal and financial situation. An individual with young kids, twenty-five years left to pay on a 30-year mortgage, lots of student loans and other debt that will take years to repay should consider a much longer insurance term than a person whose children are almost grown and who has little debt and sufficient retirement savings.

Life insurance premiums rely on many factors, including the applicant’s age, health, credit score, hobbies, occupation and whether or not they smoke cigarettes. When you apply for life insurance, you might have to get a physical exam, during which you will be screened for all types of possible health problems. Additionally, you will have to submit an application form that has detailed questions regarding your health as well as lifestyle. Your responses to all these questions and the results of your physical exam will be utilized to determine the amount you need to pay in premiums to be able to purchase the amount of coverage that you want.

Term Life Insurance is the most popular form of Life Insurance today which supplies protection for a guaranteed period of time. All things considered, that is what insurance policies are for: Protection for yourself and your loved ones.

Be Sociable, Share!

Comments are closed.

© 2011 Free Online Printing Coupons | Offline Marketing | Cashback Printing. Powered by cashbackprinting.com.