Term Life Insurance Guide

Explanation Of Term Life Insurance

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Do you need a term life insurance guide? All term life insurance is not the same, there are interesting different types. Term life policies also differ from company to company. Some of them can be quite creative. Thus term life insurance guide will give you a brief description of how term insurance works.

• Types Of Term Life Insurance

  Decreasing Term Life Insurance

  This policy is used to pay off your mortgage balance in the event of your death. The face amount decreases as the mortgage balance decreases, the premiums remain level throughout.

  Increasing Premium Term Life Insurance

  Yearly renewable term life insurance or increasing premium life insurance is really a one year term policy with the built in option to renew it each year with an increased premium. No additional evidence of insure-ability is required. You would maintain a level death benefit.

  Level Term Policies

  These policies can be bought for 5, 10, 15, 20, 25 or 30 years. The death benefits remain level throughout and so do the premiums. Some companies allow you to convert their term policies within specific periods of time. Others allow you to renew after the term period expires but the premiums are much higher.

  Waiver Of Premium And Accidental Death Benefit Riders

  At the point of application you may wish to add the waiver of premium rider. If you should become disabled for at least 6 months the life insurance company will waive your premiums for as long as you are disabled even if it is for the entire term period.

  You may also want to add the accidental death benefit rider. If you should die in an accident the life insurance company will pay twice the death benefit. If your base policy is for $1,000,000 the life insurance company will pay $2,000,000.