If Something Unexpected Happens to You…Will Your Family have the Term Life Insurance To Be Financially Protected?
Term life insurance is pure and simple; it provides coverage at a fixed rate of payments for a limited period of time. If the insured dies during the term, the death benefit will be paid to the beneficiary. Life insurance companies generally use their own underwriting guidelines to calculate your life expectancy, the amount of risk they will assume, and the rate they charge for coverage.
Term Life insurance is the least expensive way to purchase a substantial death on a coverage amount per premium dollar basis over a specific period of time. The purpose of this insurance is to hold you over until you can become self-insured by your assets.
One life insurance company might consider you a high risk to insure and therefore charge you the higher rate of a less preferred customer. Another company might see your overall health quite differently and give you the lower, preferred rate of their most healthy customers.
Regardless of the specifics of the person’s situation (lifestyle, income, debts), most people are best served by renewable and convertible term insurance policies.
The renewable clause in term life insurance policy means that the insuring company will allow you to renew your policy at a set rate without undergoing a medical exam. This means that if an insured person is diagnosed with a fatal disease just as the term runs out, he or she will be able to renew the policy at a competitive rate despite the fact that the insurance company is certain to have to pay out.