Term Life Insurance Explanation; There are So Many Life Insurance Terms What Do They Mean?
A good term life insurance explanation is this;
Term life insurance will cover an insured person for a specific period of time (a term). This amount of time (term) is totally up to you, but usually it is 10, 20 or 30 years.
After the term has expired; if you are still alive, the insurance is gone. You get nothing back. If you die before the term expires then the face amount of the policy should be paid directly to the beneficiary.
But there are other types of term life insurance too right? Well sort of…
There are rider’s that can really change the way a term plan works. Such as a “return of premium” rider; this type of rider merely says that you will get back a certain amount of money after the term has expired
-If you are still alive; hence the term -“return of premium” rider used in the description of this type of life insurance.
Just keep in mind that a Return of Premium Term Insurance rider will be more expensive than a basic term life insurance plan. Of course if you die the death benefit should be paid to the beneficiary (which is why you got the life insurance in the first place) and no return of premium would be due.
I think in most situations a basic term life insurance plan is the best option for most consumers. This is what I have personally to protect my wife and children should something unforeseen happen to me.
As I see it, I should be out of debt in the next 20 years (hopefully); the kids will be raised and out of the house and my wife won’t need as much income since everything is paid for.
Also, hopefully our few (and meager) investments will actually be worth something. This is the benefit of term life insurance for most people as well. It buys you time; until your financial position changes and still maintains fiscal responsibility toward your family.
The best definition of term life insurance is that it’s really great life insurance -but only for a ‘Term’. It is also what I personally use and recommend for most people. To find out more about term insurance versus whole life read some of the articles below.
Other Related Articles:
• Advantages of Term Life Insurance
• Advantages of Whole Life Insurance
• Compare Insurance Life Rate Term
• Voluntary Group Term Life Insurance
• Return to Affordable Term Life Insurance Information
• Beneficiaries to Life Insurance Policies
• Cheap Insurance Life Rate Term
• Return to Affordable Term Life Insurance Information from: Term Life Insurance Explanation
Return to Life Quotes Insurance from: Term Life Insurance Explanation