The origins of life insurance can be traced to the Romans and Greeks back to 600 AD when they offered coverage for families to pay for funeral and care for the family of a deceased person.
Term life insurance, by its name alone, indicates that the coverage is for a specified period of time. Commonly you will find term life called by names such as 10 year term, 20 year term, 30 year term. or Refund of Premium term.
If you buy a 10/20/30 year term or get a term life insurance quote, it does not mean the coverage necessarily ends after that time. Coverage may continue but the premium is recalculated for your new age. Keep in mind that most term life insurance ends after age 75. Term is ideal for younger people. You can buy alot of term for less money than a permanent policy. The downside is term is not forever and the premium increases at some point.
There is no cash value in term. However, Refund of Premium term insurance agrees to refund your premiums in full in the event you do not die after a specified period of time. The insurance company charges an extra premium for this optional feature. When considering such a policy, it is good to consider whether you are able to set aside the extra premium into an interest bearing account. The reason is this optional feature does not pay interest on your money when it is refunded back to you.
Ideally, a person can mix term life insurance to 1) provide the overall amount of life insurance they need to protect loves ones, with 2) some permanent life insurance to ensure they have some protection in force during those later years.
While it is possible for someone to buy 100% permanent life insurance the cost is usually prohibitive for most people. To have the ability to mix term life along with permanent life is important.
Get a term life insurance quote today! It is best to apply as young as possible while in as best health as possible to lock in the best premium possible. If you wait until you are older, age or health can cause you to pay extra premiums or even be declined.
Go to our link, “Term Life Insurance Quote”.