What is term life insurance?
This is a type of life insurance that is in effect for a certain period of time. This may be five, ten or twenty years, but regardless of the length of time, there is a specific date in which the policy goes into effect and a date that the policy ends. This is why it is called term life insurance: there is a specific term or period of time the policy is in effect. The value of the policy can be for as little as a few thousand dollars to as much as several hundred thousand dollars.
How is this different from whole life insurance?
Whole life insurance is a policy that is paid for over the entire working life of a man or woman. Over time, this policy will build up value and can be cashed in when an individual retires. This type of policy was originally designed because people wanted some of their premium payments back if they didn’t die. However, it became apparent over time that this type of life insurance was a poor investment. Term life insurance is much cheaper and can offer all the protection a man or woman needs for their surviving family members.
What are the advantages of buying term life insurance?
Term life insurance offers many advantages over whole life insurance. One of these advantages is flexibility. As an individual ages, their requirements for life insurance change. It makes no sense to have the same policy at every stage of life. For a working person who is the bread winner of a family, a term life policy can be purchased that will pay a family the wages and salaries that will go away with the death of the family breadwinner. After the children are grown, a person may only want to leave a certain amount to his or her spouse when they die. This is most likely to be a much smaller amount than a policy needed by a younger person with young children.
Are there age restrictions for a term life policy?
Generally speaking, there are no age restrictions; however, many companies will have an upper limit on the age they will pay out on a claim, but this is usually at the age of 95 or greater. A man or woman in their 70s, 80s or early 90s can still get a policy, and this can be an excellent idea. No physical will be required, and a $10,000 term life policy will usually be enough to cover burial expenses. This type of policy is low cost, and an individual in the golden years of their life will not need to worry about being a financial burden to their family when they die.
What other restrictions are there?
For younger and middle-aged people, there can be restrictions due to medical issues, but this will usually not preclude the ability to purchase a policy. The key issue is whether the condition is under control. A good example is diabetes. It is possible to be turned down for term life insurance if you are a diabetic, but if you can document that your diabetes is under control, you can get a term life policy. In fact, if your medical condition is under control, a term life policy can be surprisingly inexpensive.
Where is the best place to find term life insurance?
Without question, the best place to shop for term life insurance is on the Internet. Not only has the Internet brought down the cost of buying term life insurance polices, but it has made the entire process very easy. All of the information that is required to receive a quotation can be provided online from the comfort of your home. It is easy to do, and a quotation can be provided quickly. In addition, several insurance companies can receive your information at once, so you are assured of getting the best and lowest cost quotation possible. The entire quotation service is free, so there is nothing to lose and everything to gain by finding out how you can protect your family with a term life policy.