Term Life Insurance Q&A
- Why should I choose BeyondQuotes?
- Which companies do we represent?
- Is BeyondQuotes licensed where I live?
- Is my information confidential?
- Do you only offer rate quotes?
- How do we choose which companies to represent?
- How much Term Life Insurance do I need?
- What are "level" policies?
- What should be the term length?
- Is it worth insuring my spouse on my policy?
- Can you explain the difference between Term and Whole Life plans?
- I suffer form a pre-existing condition. Can I still be insured?
Applying for a Policy
- How do I apply for Term Life Insurance?
- How do I find the best value plan for my needs?
- What is the waiting period between applying and coverage?
Various Types of Arkansas Term Life Insurance
There are various types of insurance policies available in the market. Each plan is different in terms of rates and benefits offered etc. This entire information overload can leave you confused and exhausted.
Insurance companies offer different types of product in Arkansas. Some of them include- renewable, annual renewable, level premium, convertible and decreasing term coverage.
Renewable term insurance
You have an option to renew the policy once it runs over. There is nothing to worry even if your health has deteriorated over a period of time. It means far greater financial risk for a company, so renewable term coverage usually has high premium than the annual renewable policies. You should check all the details before renewing a policy. The conditions may vary from one company to another.
Annual Renewable term insurance
The plan gets automatically renewed each year till you reach a certain age limit. This age limit is normally of 65 years, but can be adjusted as per your needs and priorities. Each year when you renew the plan, the premium goes higher. The applicant has every possible reason to believe that he would receive the best possible rates. The health factor plays a major role in determining the rates.
Level Premium term coverage
You would have to pay a fixed amount of premium every month till the end. This means from time period normally ranging between 5 and 20 years, your premiums will be the same, as the company will take an average of the premiums that it would normally charge in case of an annual renewable policy. It means that you pay more premium initially and less in the subsequent years. The main advantage is that the premiums remain fixed, even though you age, till the end of policy. Be aware, if you decide to change your plan in the middle of your term, the premiums will go up.
Convertible term coverage
In this case, you can convert your plan into any other type of insurance like endowment life or whole life coverage. If your needs and priorities change with time, convertible term coverage policy can be quite a boon. Again, since this policy has greater risk factor for the insurance companies, expect premiums to be more.