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Term life insurance is life insurance, which offers coverage for a specified period of time, generally for a certain amount of years. This type of coverage is frequently chosen by young couples planning to have a family. The cost of this type of life insurance is lower than the death benefit. With term life insurance, the death benefit, which can be equal to the amount of policy coverage multiplied by the number of years for which the policy is in force, continues after the policy holder's death. Unlike whole life insurance policies, there is no build up of cash value on term life insurance policies.
In essence, term life insurance provides coverage as you die, allowing your loved ones to not only pay expenses and make repairs after your death, but also to gain access to some of your estate. This makes it a useful type of coverage for people who want to ensure that their families are provided with some income even after they are gone. Typically, the death benefit is small, which means that it is less expensive than other forms of insurance coverage and it does not require a large investment to determine the amount of death benefits paid out after a policyholder dies. Because term life insurance provides death benefits as a part of a permanent life policy, there is no need to pay tax on the death benefits.
The term policy can be for one year to twenty years. If it is twenty years, then the premium will be about twice what it would be for one-year coverage. The premiums may be based on the age at the time of purchasing or if the person purchasing the term policy is older when they purchase, then the premiums may be based on the age of those who will be paying the policy if it is renewed at the end of the term. Most companies require that a person be at least twenty years old to apply. The five years is because the amount of the death benefit at the end of the term is usually based on how long the person has lived.
People who purchase coverage usually get life insurance quotes from a company or through an agent. They compare the cost of the coverage versus the amount that they have accumulated through their wages. When they get this information, they will usually make the decision to purchase a term policy. When the term policy matures, there is a time when the premiums will increase greatly. People will have to take a medical exam if they want to continue to receive coverage after the age of sixty-five.
The reason for the increase in premiums is to protect the financial investment that the company has made. The premiums can also help to protect the investment. The company can choose to renew the term life insurance policy at any time during its term policy. The renewals are due about six months before the policy expires. If there are no renewal premiums paid for the term policy, then the policy will automatically expire.
Term life insurance policies are usually affordable because you pay only a few year's premium and can be paid off quickly with little financial investment. These policies are usually good for two to fifteen times your death benefit. These whole life premiums will accumulate a cash value which will be used as the financial investment. After your death benefit is received, the cash value of your policy is automatically paid off.
The term policy can be for one year to twenty years. If it is twenty years, then the premium will be about twice what it would be for one-year coverage. The premiums may be based on the age at the time of purchasing or if the person purchasing the term policy is older when they purchase, then the premiums may be based on the age of those who will be paying the policy if it is renewed at the end of the term. Most companies require that a person be at least twenty years old to apply. The five years is because the amount of the death benefit at the end of the term is usually based on how long the person has lived.
People who purchase coverage usually get life insurance quotes from a company or through an agent. They compare the cost of the coverage versus the amount that they have accumulated through their wages. When they get this information, they will usually make the decision to purchase a term policy. When the term policy matures, there is a time when the premiums will increase greatly. People will have to take a medical exam if they want to continue to receive coverage after the age of sixty-five.
The reason for the increase in premiums is to protect the financial investment that the company has made. The premiums can also help to protect the investment. The company can choose to renew the term life insurance policy at any time during its term policy. The renewals are due about six months before the policy expires. If there are no renewal premiums paid for the term policy, then the policy will automatically expire.
Term life insurance policies are usually affordable because you pay only a few year's premium and can be paid off quickly with little financial investment. These policies are usually good for two to fifteen times your death benefit. These whole life premiums will accumulate a cash value which will be used as the financial investment. After your death benefit is received, the cash value of your policy is automatically paid off.
