The Basics of Term Life Insurance
Life insurance can mean the difference between financial ruin and financial security. If you are in the process of starting a family, have a family already or just want those close to you to feel more safe and secure, one product that can definitely help you sleep better at night is life insurance.
Buying life insurance doesn’t have to be complicated and for those with basic needs there are specific insurance products that are extremely easy to understand and purchase. One of the most popular types of life insurance on the market today is Term Life, here are the basics that you should know.
Term life is a type of insurance that lasts for a specific period of time, usually one to 20 years with 5, 10 and 20 years being the most popular. Term life insurance does not have a cash value, unless you pass away, in this case your beneficiary receives a set amount of money.
The cost of term life insurance is usually based upon two main factors, the age of the insured and the amount of payment if he or she dies. Other factors that may affect price are gender, whether or not you smoke and your health condition. For most individuals (especially if you are under age 35), a health exam is not necessary. You can easily purchase term life insurance by easily filling out an application. Term life insurance usually has low rejection rates, so that most individuals that apply are usually accepted. If you are older than 35 and/or have health issues, you may require additional testing or your premiums may reflect the added risk you pose to the insurance company.
Besides being extremely easy to apply for, term life insurance is relatively affordable. For instance, $100,000 of term life insurance for a male or female under 30 years of age can cost less than $150 per year and most insurance companies offer the option of paying yearly or even monthly. It also should be noted the amount of term life insurance you can purchase can vary significantly. For instance, in some cases, you can purchase as little as $10K of term life insurance (mostly to cover funeral and burial expenses) or take out a policy of over $1,000,000 if you have a family.
For those that are either thinking of starting a family, have a family or seeking security, term life insurance is perhaps the easiest way to protect the ones you love.
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