Term life insurance is a type of life insurance policy with a specified end date, like 20 years from the start date. The death benefit will only be paid if the policyholder dies during the chosen term. The death benefit is the money paid to the beneficiary when the policyholder passes away.
The best option for young families is term life because it covers only a short period and is usually less expensive than permanent coverage. It is possible to buy a policy that will cover the years your family is dependent on you financially. You can also lower your coverage once your children become financially independent.
For young people in all situations, a 30-year term policy on life insurance is the best option. You decide how long your term life insurance policy will last when you apply. Ten, 15, 20, and 30 year terms are typical. The longest term, a 30-year-term life insurance policy is smart for young people. It covers a range of life situations including:
Term policies can be purchased either individually or as part a group policy through an employer, civic or religious entity.
Term insurance is easy to understand. It's also simple to find and compare quotes for life insurance. The policy covers you for the entire term of the policy as long you pay the premium. Three important decisions are required: how much coverage you need for life, how long you would like the range to last, and what type of insurer you wish to work with.
A 30-year term policy on life insurance can be a great option for a couple who is financially secure and is able to pay the premium difference between 20-year and 30-year terms.
The term and whole life insurance policies do not require medical exams. But, the death benefits for wholelife coverage are generally limited to $50,000 or lower -- this is tenfold less than what's typical for term life benefits. If an insurer does not offer coverage for medical exams with a higher mortality benefit, this usually means that the medical exam is dependent on your answers to health question.
You are concerned about your own health? Life insurance approval may be difficult if there are health problems such as controlled diabetes or a GI problem. A simplified issue helps people who may not be eligible to traditional policies get the coverage that they need and protects their families.
If you're not yet pregnant, you can lock down a lower premium while you're young and healthy. You can also make sure your policy does not mature before the children you have become adults.
No medical exam life insurance policies are available for the term and whole life insurance. Still, the death benefits for whole life coverage are typically limited to $50,000 or less - that's ten times less than the typical limit for term life benefits. If an insurer offers no medical exam coverage with a higher death benefit, it typically means that the medical exam depends on your responses to health questions.
Many term life insurance policies offer a conversion option, putting you in control. This allows you to switch to a permanent life insurance policy before the term expires, usually without requiring a medical exam.