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What is Term Life Insurance?

Monday 5 July 2010 - Filed under Indiana Life Insurance

What is Term Life Insurance? Term life insurance is life insurance that provides a policy holder or designated person coverage for a specified length of time or term with payments at a fixed rate. Rates for term life insurance vary greatly from one term life insurance company to the next dependant upon health history and other deciding factors. Coverage expires after that period with some plans offering conversion options that may or may not be subject to underwriting. The beneficiary will receive the death benefit only if the covered individual passes during the specified term. Term insurance offers the most protection at the least cost.

Term life insurance vs. whole life insurance. Whole life guarantees coverage at fixed premiums for the entire lifetime of the covered individual. Whole life usually builds cash value that can be borrowed against without going through a credit check or bank approval. Unlike term, beneficiaries receive the death benefit whenever the covered individual passes regardless of time frame. Many financial experts feel the best advice is to buy term life and invest the money saved between the two policy costs in a vehicle that offers a higher return.

Term insurance protection comes in many forms. Some of the more popular policies gaining ground in the market are; no medical exam term life insurance and return of premium term life insurance. Each of these policies may be right for a specific situation, however they will never be the cheapest form of term life that is fully underwritten. Return of premium term does exactly what it’s label suggests by returning all premiums paid for coverage during the life of the policy. It can be seen as a quasi savings account with the added protection of a life insurance death benefit. Again, there are much better ways to invest the difference in cost of r.o.p. term and standard level term.

For more information and Indiana Term Life Insurance Quotes visit IndianaOnlineInsurance.com

2010-07-05  »  admin

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