Feb 07 2010
Know Your Term Life Insurance To Get The Best Deal
The term life insurance policies are the most affordable and easy to buy policies among all other types of policies. The terms and conditions associated with these policies are also simple and you can buy them for a nominal amount. The only prominent term here is that you will have to pay the premiums for a fixed time and then if you die within that term then your beneficiaries are paid the death benefit. Initially term life insurances did not pay for suicide cases but later on this clause was modified and now the companies do pay for suicides also.
There is but one special suicidal clause in term life insurance and that is if the insurer can prove that the insured person has committed suicide for the death benefit the he is eligible to cancel the claim. Also if the insured person commits suicide within two years of the policy then his beneficiaries are not paid any death benefit. Instead they are paid the amount of the premiums that has been paid by the insured person during the two years. Considering the fact that the premiums are quite affordable hence the amount of premiums are not that high.
The term life insurance rates can indeed very low to the extent that the monthly premium that you need to pay can be even lower than the money that you spend on eating out. If you choose the monthly mode of payment then the rate of premium is going to be even less. As the rate of term life insurance depends upon a host of other factors like age, gender, smoking habits, medical health etc, hence the rate varies accordingly. If you are young and in the best of health then you can even avail the lowest rate for term life insurance policies.
As in term life insurance the rate is quite low and the cost of the premium quite affordable hence it is advisable to decide the term of the premium for long years so that the projected age of death is covered. Since the insured person gets the death benefit only if he dies within the stipulated period hence keeping long term is a good idea. If you choose a short term then it is likely that you will survive the term and hence your policy will not yield any benefits.
Term life insurance can be classified into two main types. They are:
• Annual Renewable Term- these are annual renewal policies where you buy the policy for a year and at a fixed rate. If you die within the year then your beneficiaries get the death benefit and if you survive the term then you can either renew the policy provided the system is there or you will have to buy a new policy at a different rate. Since a healthy person has very little chance to die within the year hence these policies offer very low rates.
• Level Term life insurance- these policies are meant for longer terms and may vary from 5 to 30 years and so on. Here the rates are level throughout the term and the annual premium is calculated based on the level rate that comes on the entire cost of the policy.
The annual term life insurance is such that you will have to annually renew the policies but remember to include the renewal clause with the policy at the time you get it. The catch here is that the policies offer very low rates initially but gradually the rates increases and after some time it becomes financially nonviable. So unless you have any urgent need it is better not to opt for the annual term life insurance policies.
If you want to buy the cheapest term life insurance then get different term life insurance quotes from different companies. This will ensure that you get the best deal and from the most reliable company. If you do not want to select the quote yourself then you can also take the help of a reliable broker who holds multiple carriers. He will be in a position to offer you the best deal and also help you in selecting the perfect policy for yourself.
The other advantage of working with insurance brokers is that they usually deal with top-rated companies which offers them good incentives. So, apart from providing you multiple quotes from good companies they can also give you the professional help that you might require while applying and buying the policy. As the procedures from applying for the quotes till buying the policy is quite intrinsic and comprises number of steps, the help of a broker can really come in handy. He will also help you get past all the steps of buying the policy and you can buy the policy without any hassles.
To get the most competitive term term life insurance rates, check out Delnaz Thompson’s site. She specializes in the different cheap life insurance. Visit her site for more information.
