If you have spent any time whatsoever watching television recently, you have probably seen commercials advertising low cost life insurance with guaranteed coverage that everyone can afford. And, if you are like many people, these commercials do get you thinking about the fact that you don’t have life insurance yet, but you continue to procrastinate. Or, perhaps you feel you cannot afford the premiums or that you won’t qualify for the rates advertised due to a health condition, so you set off checking to your choices. The truth of the matter is that you need life insurance, and there is affordable coverage out there to satisfy your requirements. There are two major types of life insurance, whole life and term life. The less expensive of the two is term life insurance.
When you buy term life insurance, you are buying a policy that will provide protection for some period of time. A would earth benefit is paid only if the person insured dies during the period of the coverage. Most insurance companies have set coverage amount lengths it is possible to pick 20 years term insurance coverage. These coverage periods may be as little as one year at a time, but most often are provided in five or ten year increments. As the policyholder, you get to determine who will get the benefit payment in the event of your death. You ought to know, however, that some states and insurance companies have conditions regarding who can or must be designated as the beneficiary. As an example, certain states require that your partner be the beneficiary if you are married, and some insurance companies don’t permit you to name your pet as the beneficiary also bad for fluffy, you will not be setting her up with a gold doghouse and steaks for life.
But within limits, you can leave the advantage to anybody you prefer or to your estate to be divided up according to your own will. The biggest downfall of term life insurance is that you need to die before your family will get anything from it, because the benefit is only payable once the policyholder dies. The policy itself has no cash value, and you cannot borrow against it just like you can with whole life policies. Another negative feature of term life insurance is that it gets more expensive as you get older. And, speaking of age, you do not have the right to continue the coverage irrespective of your age how you can with life. You may be familiar with term life for a benefit that companies provide to their employees, but it doesn’t mean that you cannot buy a single policy for yourself. To the contrary, many insurance companies offer individual term life coverage.