Cheap Term Life Insurance
Term life insurance is basically a "no frills" type of life insurance. It is life insurance with an expiration date. You sing a contract that specifies an amount of coverage for a specific time period. You can plan the term to extend until retirement, or until children are grown, or until college is paid for.
Cheap term life insurance allows you to spend a lot less money. You can then use the saved money to invest or whatever you like. Unlike whole life insurance, this cheap term life insurance does not build up cash value and the premium will normally increase as the policy owner ages. However, there are fixed rate term life insurance policies but these are typically more expensive.
If you die while the policy is active, term life insurance provides the contracted death benefit to your survivors. The policy does not provide any returns beyond the contracted death benefit and once the policy expires, the insurance coverage ceases.
Cheap term life insurance should be considered if you:
- Need coverage for a limited period of time,
- Are young and looking for lower premiums,
- Are buying a home or car, where the financial burden of a loan will disappear in time.
Term life insurance policies can be renewed when the term ends. Before buying a term life insurance policy, checkout the renewal provisions so that you future insurability is protected. Here are some of the more common choices:
- Annual Renewable-----the premium goes up each year.
- Level Term-----the premium stays the same for some specified and then increases.
- Automatic Renewable-----you'll pay more for this feature.
Some other options on term life insurance policies include:
- Re-Entry------this will have a lower premium than an automatic renewable policy. If you pass a physical examination, you can renew at the same low rate as a new customer. However, if you have developed any health problems, your premium will go up and may cost more than an automatic renewable policy.
- Convert-able term------you will have the option to convert to a whole life insurance policy at the end of the term.
Get some cheap term life insurance by going to the internet and searching for online term life insurance rate quotes. Many of the sites will let you compare all the various options described above. Life is uncertain, so do it now.
