Yes, it is misspelled on purpose. (its a real search engine term) When looking for the best term life insurances, (insurance) you will need to know a few things about life insurance in-general. To keep from boring you, we have made this list short and simple. Just 5 things to start out here and make it clear.
Types of Term Life Insurance
1. Level face: this policy type will keep the same face amount for the life of the term. If a person is insured for 250,000 that amount will not change during the entire term of the policy. If the insured passes away during that time the full 250,000 will be given to the beneficiary. If you don’t pass away though, all the premiums are lost, this is the price to pay for the smallest premiums.
2. Decreasing face: this policy type will decrease the face amount over the course of the term. These are very common for use with mortgages. Usually, the face amount decreases at the same rate or amount as the balance on the mortgage. These can also be used for business loans.
3. Renewable Term includes a renewal provision that gives the policy-owner the right to renew the insurance coverage at the end of the specified term without evidence of insurability.
4. Convertible Term gives the policyholder or owner the right to convert the term policy to a permanent or whole life policy at a later date.
5. Group Term insurance is typically purchased by an employer or professionals and is intended to cover more than one person, usually resulting in reduced premiums. These are the cheapest type of policies as a large group of people are covered all at once. This spreads out the risk for the insurance company, and thus lowers the premiums for each individual that is covered. These are often accompanied by a health insurance plan and can be included as part of your coverage. That being said, often people forget or don’t even know that they have this type of coverage.
A term policy will cover the insured for the specific amount of time of the term only. If the insured has purchased a 10 year term insurance policy, it will cover them for only 10 years.
At the end of the 10 year term the insured could keep paying on the policy but the premiums jump to around 10 times the original premium amount. Otherwise, all paid premiums are lost, you get nothing back for your money. This is not a bad thing as the cheap price is often the selling point of these. Also, your needs as a retired person may not be as high as they were when you had a home loan, car loans, etc. Your expenses may (hopefully) be lower when you get older, so your needs for life insurance typically will decrease. Another reason term life is a good deal for most of us.
Almost no-one keeps paying on these policies when the original term has expired. If the person would still need insurance they would most likely purchase another policy.
There are many other articles about the best term life insurances for your dollar.