Term Life Insurance Facts And Tips

Term life insurance is becoming the more popular of life insurance policies. That’s because the premiums for term life insurance are lower than whole life insurance protection. In addition to lower premiums, you can also choose how to pay your premiums such as monthly, quarterly or annually. The Pennsylvania area has seen an increase in the number of term life insurance policies going into effect. Another good thing about term life insurance is that once you take the policy out, your premiums will stay the same throughout the life of the policy. There are no premium hikes for you to worry about. So, what are some of the benefits of term life insurance? •You can choose the term of your life insurance policy, such as 5, 10, 20 or 30 years. •Guaranteed renewal after the policy expires with most insurance companies. •Coverage amounts start at $25,000 and go up. Each insurance provider will be different on coverage amounts they offer. •Rate of Premium return. Most term life insurance policies will have a guaranteed rate of return which means if you have not had to use the policy and all premiums are paid in full, when the policy expires, the premium you’ve paid or a percentage will be returned to you. •Term life insurance can be converted to a whole life policy but is dependent upon age and other criteria. No one ever knows what life has in store for us, therefore, we never know if a tragedy may occur. You also want to make sure your loved ones are cared for in the event you pass away. It helps them pay off debts and to help pay for any mortgage payments if necessary. Term life insurance rates are based on a person’s age and overall health. Younger people who don’t smoke and are healthy will have the lowest term life insurance rates than older people. It is important to note that rates do slowly rise as you age. And, once you reach the age of 50 the rates typically start getting much higher. Term life insurance is available for those over 60 but it may not be guaranteed renewable for 20 or 30 years in your state after a certain age. Most states, however will still offer a term life insurance policy but will typically be five year policies.