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?
Kinds of Term Life Insurance
Term Life Insurance is basically of two types-level term and decreasing term. Most of the people nowadays, prefer buying level term insurance. As the name suggests, the death claim paid during the term of the policy differs in level term insurance and decreasing term insurance. In a level term insurance, if a death takes place during the term, the same amount of death benefit is paid out to the beneficiary.
Types of Level Term Insurance are:
- Annual (or yearly) Renewable Term
- 5-year renewable term
- 10-year term
- 15-year term
- 20-year term
- 25-year term
- 30-year term
- term to a particular age (normally 65)
These days, 20-year term is the top favorite amongst people. Annual renewable term used to rule the roost before. Usually, an incumbent is not granted a term that passes his 80th birthday. Majority of the companies do not believe in selling insurance for long terms where an individual ages 80 or more.
When a Term Life Insurance is renewable, it implies that it will remain in line for a limited period of time, up to a certain age. In between, if the policy holder gets terminal illness or other major problem, his policy will still remain in force. At the onset of a life policy, the premium is calculated on the basis of an individual's age and health condition. And in the case of level term policy, the premium amount remains the same throughout the term.
This means that for a five-year term, the premium would remain the same, but after that a new premium amount would be calculated based on the person's current age. This would continue for every five years. There are some long term polices wherein the premium amount does not go up, while there are others who do not give such an offer. Furthermore, some term life policies can be converted into a permanent one by the policy owner without providing an extra proof of insurability.
What is “Return of Premium”?
Generally, if you haven't filed a claim during the term of the policy, you will not receive any refund of the premium. This rule applies to almost all kinds of term insurance policies, together with homeowners and auto insurance. Consumers are certainly not happy with this condition and therefore, some insurance companies have come up with feature called “return of premium”.
With this feature, you might have to shell out higher premiums compared to policies sans this feature, but you will get back your base premium if you do not claim your insurance coverage by the end of the term. But in order to get your premium benefit, your policy should be in force. Some insurers might return only the base premium, whilst others may give back both, the base as well as the extra premium.
Term Life Insurance is the most affordable and genuine life insurance that you can buy for your family. You will die in peace because your family will be secure from all kinds of financial turmoil. Call our representative to get your Term Life Insurance quote.