Term Life

Term Life Insurance

Of the many different types of life insurance available to consumers, term life insurance is usually the most inexpensive. In general, a life insurance policy gives money to the named beneficiary upon the death of the insured. Types of insurance include: whole life, variable life, and term life. While part of the premium in a whole life or variable life insurance policy goes into an investment fund, none of the premium in a term life insurance policy is put into an investment fund. In other words, the premiums in a term policy pay for the insurance.

Many people prefer term insurance to provide their families with the security needed, and then use the extra funds they would have paid into a whole life or variable fund to choose their own investments. As a consequence, they too are acquiring life insurance and using funds for investment purposes, but they’re using their funds in a different waythat suits their personal needs.

Like most insurance plans, the insured in a term life plan will still need to have a basic physical exam conducted by a nurse to ensure they are insurable. This would also include any blood work. The policy will reamin as long as the premiums are paid. Term policies come in many varieties, but the most popular models are annual, 7-year, and 10-year policies. Annual term policies carry a premium that increases slightly each year, while 7-year and 10-year term policies carry premiums that remain the same for 7 or 10 year periods at a time.