First, you should have already determined that you want term life insurance vs whole life insurance. You want to be sure that you are buying a term life policy from a good company. It is essential that you ask a lot of questions, and most important, that the agent answers them all. There are a few different types of term life insurance, and you want a company that will explain everything, and will answer any questions you may have. Life insurance prices are set by the company and are not normally negotiable. While an agent may offer some options, the price will be a set one.
Now that you've decided you're going to be buying term insurance, it's time to see which type and which options are the best for you. Our goal is to provide you with enough information, hopefully answering most of your questions.
Term life insurance is a type of insurance which protects the consumer for a certain period of time. Once your term insurance is up, most companies offer the option to renew term life insurance, at the expense of taking a medical test. Should they find anything wrong, then the premium can be raised quite a bit.
With a yearly renewable term or YRT you are guaranteed a yearly renewable policy without the medical exam. This is a good choice for people who only need the life insurance for a short amount of time. Consumers buying term insurance don't normally need it for a long period of time. However, if you need it for a long period of time, then selecting a whole term life insurance policy is probably more suitable.
Another type of term insurance, guaranteed level premium, starts with a higher initial premium than ART. The main benefit is that you can lock in the rate for a specified period of years, usually 10 to 20. After the term expires, you can renew but will have to take a medical exam. Guaranteed level premium term insurance is ideal for people who have intermediate length debt, such as a mortgage. You can buy a policy for the length of your mortgage and have affordable protection until the debt is paid off. At that time, you can elect not to renew, or you can purchase a different type of insurance, such as whole life.
Once you have selected your term policy, some companies will give you the option to convert the policy into a permanent one... over a period of time. If the option to convert is possible, then there is no need to have a medical exam, as long as it is done within the time period of the term policy. Ultimately, buying term life insurance shouldn't be too difficult. If you're health insurance provider doesn't answer all of your questions, then you should think about selecting a different company.
Whether you're buying something as important as Term Life Insurance or hiring a contractor to get an estimate for your Foundation Repair Costs you want to make sure you do as much research and due diligence before following through with a purchase to ensure you're happy with the end result. With so many options floating around, it can be difficult to make the right choice, but if you do enough looking around, then you're bound to make the right one!
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