Life insurance and term plans are plentiful as long as you know how and where to look for them. Insurance is a very competitive business and insurance companies try to attract more customers by offering attractive rates, investment options, death benefits and term periods. With the benefit of online resources, you can easily find good cheap term life insurance quotes. Use these quotes to narrow down on a policy that will suit your needs.
When you request for a life insurance quote on line for a term insurance policy, the first step is to compare these quotes that will provide the rates from different companies. The needs of your family must be uppermost in your mind when requesting term insurance quotes. So, do not only look for low rates for this could result in you not getting enough coverage for your future family needs. Compare your term insurance quotes based on coverage, reputation of the company, customer reviews and such. For, not only must you get affordable insurance, you must get it from a good insurance company.
So, when you request for cheap term life insurance quotes either from online sources or through insurance agents, you will be given a list of the various types of plans available. Understanding each plan will help you decide which the best one for your family is. Some of the types of term life insurance available are:
• Decreasing term
• Guaranteed term
• Level term
• Return on premium
• Instant term
• Renewable term
• Convertible term
• Adjustable term
The decreasing term insurance as the name suggests offers decreasing death benefit that will result in cheaper premiums the longer the policy is valid. This is useful to pay off mortgage loans, business loans or credit card payments. Guaranteed term is also known as no medical term life insurance where an applicant is eligible for coverage even without a medical certificate. While this provides guaranteed coverage, it has certain limitations like a death benefit cap of $50,000 and claims not being paid if the policyholder dies within 2 years of purchasing the policy.
Level term is by far the most popular of all term insurance plans. It can be taken for fixed periods ranging from 5-30 years. The premiums will not increase throughout the term even if the policyholder’s medical condition changes for the worse. ROP or return of premium insurance refunds all premiums plus interest at the end of the term if the holder is still alive. This is a great benefit for when term life insurance was first introduced, policyholders were not eligible for any premium returns if they outlived the term.
Instant term life is useful for those who are busy and do not have the time to visit insurance offices or undergo lengthy medical exams. It provides short term coverage for small amounts of less than $50,000 cheaply and quickly. Renewable term insurance means that a person can renew the policy when the current term expires. Since all term insurance rates are based on the age and health of a person, renewing a term insurance will almost certainly result in increased rates.
Renewable term insurance offers policyholders the right to renew a policy without the need to undergo another medical examination. This means the policy can be renewed at not such high rates as one would have to if they undergo a medical exam. Convertible term insurance gives the holder the right to convert to a universal or whole life insurance once the current term is over. This is useful for those who are more financially secure later in life and prefer to choose an insurance that offers an investment option.
Your insurance needs are originally calculated based on your future needs. If you take a long term policy, your needs can automatically change over time. An adjustable term life insurance gives you flexibility of changing premiums or death benefits over time. You can either increase or decrease your coverage and therefore your insurance rates will also increase or decrease. This really depends on your expenses in new additions to the family, income fluctuations, performance of your business, illnesses that result in increased medical bills and such. Study all these term insurance plans, compare quotes and you will get a good policy with adequate coverage for the family.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on insurance life and cheap term life insurance quotes, visit his site today.
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