TERM LIFE INSURANCE policies provide coverage for a certain time period, meaning, a death benefit will only be paid out when a policy holder dies within the term. This could be the top reason and advantage of term life insurance as it tends to be cheaper. The two forms of term life insurance are: level term, where the insurance entity pays the same death benefit no matter when the policy holder dies during the term; and the decreasing term, wherein the benefit decreases throughout the duration of the policy. The most popular type of level term policy would be the 20 – year type, while the least sought after is the annual type.
Another advantage of term life insurance policies is that most of them are renewable, allowing policy holders to reinstate their policy after the term ends. However, reinstatement usually is followed with passing a medical check-up and an increased premium. Most insurance entities also reportedly do not renew policies ending after 80 years of age. Also, premiums for term life insurance are based on your age and health status when the policy is contracted. While some insurers guarantee premiums to stay the same throughout the term, other insurers do not. Be sure to note of these premium provisions before signing a policy.
Tidak ada komentar:
Posting Komentar