How Important Is Term Life Insurance?
By Alibaster Smith, an eHow Contributing Writer
Term life insurance is a type of insurance that allows you to purchase death benefits relatively cheaply. Whether you purchase term life or a permanent life policy depends on a variety of factors. Make sure you understand how important term life insurance is.
Significance
Term life insurance offers simple death benefit protection with premiums that adjust upwards every year or with premiums that are level for the term period. This is significant because it offers you a choice of how to pay for your death benefit. Level premiums are often far cheaper over the long term because the insurance company is able to invest premiums to hold down future premium increases as the cost of insurance rises.
Benefits
Term life insurance is easy to understand. You pay a premium and receive a stated, guaranteed death benefit in return. When you stop paying premiums, your death benefit ends. Term life premiums are also relatively inexpensive when compared to other forms of insurance.
Considerations
Make sure that you don't need insurance for your entire life. Term life insurance eventually expires. Renewing term life insurance will always be an expensive proposition as the cost of insurance rises as you get older.
Εστάλη από τη συσκευή μου BlackBerry®
By Alibaster Smith, an eHow Contributing Writer
Term life insurance is a type of insurance that allows you to purchase death benefits relatively cheaply. Whether you purchase term life or a permanent life policy depends on a variety of factors. Make sure you understand how important term life insurance is.
Significance
Term life insurance offers simple death benefit protection with premiums that adjust upwards every year or with premiums that are level for the term period. This is significant because it offers you a choice of how to pay for your death benefit. Level premiums are often far cheaper over the long term because the insurance company is able to invest premiums to hold down future premium increases as the cost of insurance rises.
Benefits
Term life insurance is easy to understand. You pay a premium and receive a stated, guaranteed death benefit in return. When you stop paying premiums, your death benefit ends. Term life premiums are also relatively inexpensive when compared to other forms of insurance.
Considerations
Make sure that you don't need insurance for your entire life. Term life insurance eventually expires. Renewing term life insurance will always be an expensive proposition as the cost of insurance rises as you get older.
Εστάλη από τη συσκευή μου BlackBerry®
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