UnCategorized Too many people who enroll or insure themselves do not really know or understand what they should suppose to know about their term life insurance. Things such as how much does life insurance cost should be known. If no claims are made against the policy during the term, you do not receive any benefits after the policy expires, just like auto or homeowners insurance. One thing you should really need to know and understand is the policy coverage and fine prints. What is covered and what is not covered and for how long is very important to know and understand. If the insured dies during the term, the death benefit will be paid to the beneficiary. You can buy term for periods of one year to 30 years. A term policy is life coverage only. A good example for those who may be somewhat confused is that whole life is like owning, where as term is like renting. And both these types of insuring serve a purpose. In the final analysis, you need to determine what insurance company you buy insurance from, because it does make a difference. People who say term is always right have a very simplistic view to the financial planning process and probably are much more focused on making money for them. Term is a low cost or cheap because 99% of the time you will outlive the term of the policy, and the insurance company will keep your premiums and never have to pay out a death claim. The amount of death protection you purchase will stay the same, but your premiums increase every year. Many term life insurance policies offer a convertibility privilege. This is a nice feature that allows you to convert your term policy to permanent life insurance for an equal or lesser amount of coverage. These types of insurance require coverage until you die and do not disappear over time. If you let the policy lapse generally in the first five or six years, you may not get any of your premium back, and term rates could have declined in the interim. Often the feature is offered as a rider on regular level-premium term policies of 15, 20 and 30 years, but it’s also available as a base policy. The longer you keep it, the higher percentage of premiums you’ll get back, up to 100 percent at the very end of your term. Talk with an agent that is well informed about your needs. Whoever you pick, just make sure they know the life insurance world to a tee. Another thing is do not buy more insurance than you need. Many brokers do not have your best interest at heart and will try to sell you policies and riders that you don’t want. It’s not a good idea to buy too little insurance, but buying too much is unnecessary and will only cause your insurance premiums to be higher. You will find that many industry insiders suggest that the amount of life insurance coverage you should buy should be five to ten times your annual income before tax. About the Author: 相关的主题文章: