What is term insurance?
Term insurance is a form of life insurance and is one of the least expensive ways to have life insurance protection. In comparison to whole life insurance, it is like renting instead of owning your own home. It is very popular with couples just starting at as it affords a lot of protection for a small cost. Families needing coverage that are burdened with other expenses find that the need for life insurance exists and the low cost of term insurance fits their budgets.
Unlike whole live or universal life insurance, term insurance does not build a cash value, has no loan provision and at some predetermined interval the premium will increase and/or the policy will end.
Some of the highlights of term insurance are:
– Low out of pocket cost of insurance.
– Available in various periods of coverage. One year, 5, year 10, year 20 year and 30 year coverage terms. (other years are available).
– Most plans can be converted to whole life or universal life without a medical examination.
– Available with the popular riders of double indemnity and waiver of premium.
– Various types of plans, level or decreasing term insurance.
– Smoker and non-smoker rates are available as well as rated policies for individuals with medical conditions.