Guaranteed Term Life Insurance
Not surprisingly, guaranteed term life insurance products are one of the most popular insurance choices for families and individuals. This type of policy is where the policyholder is covered for a specific period of time, or 'term'. Many families choose this type of coverage for the period of time when their children are infants through the completion of their college years. If the policy owner dies during this period, the company pays the specified amount to the beneficiaries. These proceeds from the policy are also sometimes referred to as the 'death benefit'. Such policies have (at least initially) a lower premium than other types of insurance. This has great appeal to families who want to have assurance that loved ones will be provided for in case of an unexpected tragedy. The 'guaranteed' aspect of the policy is that the premiums remain unchanged during the initial policy period.
The consumer can specify the term length and the coverage (amount of money) which meets the family's needs. This is an area which may call for some direction from an insurance specialist. This professional can suggest appropriate coverage based on the customer's particular situation, health, finances and other factors. Of course, the final decisons regarding the amount of coverage is left up to the customer, but the agent can be helpful in pointing out aspects which may have been overlooked. For example, although families routinely insure a breadwinner with guaranteed term life insurance, other persons in the family may inadvertently be overlooked in the process.
Even if a spouse is unemployed, the services which may be rendered would be expensive to replace should that individual die. Costs for expenses such as childcare or eldercare, housekeeping and food preparation may need to be included. These amounts, and the decisions about insuring other family members, should be considered well in advance of purchasing guaranteed term life insurance. An Internet search can reveal sites which feature information from hundreds of insurance companies. Coverage advice and free quotes can be obtained within minutes. Helpful articles can illuminate some relevant issues which might ordinarily be overlooked. Armed with this information, a person can select the type of guaranteed term life insurance policy which best meets the needs of his particular circumstances.
One problem often encountered in selecting insurance is that recipients of such funds may regard the death benefit as a bonanza instead of what it was intended to be -- that is, provision for the housing, education, and daily needs of the beneficiaries for some time to come. In this case, the funds will soon be gone, ...for riches certainly make themselves wings; they fly away as an eagle toward heaven. (Proverbs 23:5) Perhaps some sort of trust arrangement can be secured in connection with the funds obtained through a guaranteed term life insurance policy to guard against the squandering of assets which probably took years to accumulate. This may be especially appropriate for younger beneficiaries who do not yet have the maturity to budget funds or plan for important future needs such as financing an education. A surviving spouse may often be designated as trustee of such monies.
Many individuals worry about medical exams which may be required in order to participate in guaranteed term life insurance policies. Some outfits advertise that no such exams are needed. However, some personal information is generally still required regarding the height, weight, risk profile (planning on being a pilot?), and overall state of health. Some ask questions regarding blood pressure, cholesterol levels, tobacco use, and the history of heart disease among close relatives. Significant health problems and medical conditions for which prescription drugs are needed will most likely also need to be revealed. This is why some advise that people should obtain a policy while they are young and healthy, as premiums will almost certainly be lower. Usually, as long as the policy is kept active, its continued availability is almost guaranteed. However, if one waits until health conditions demand some sort of help, coverage may be more difficult to obtain, and premiums will certainly be more expensive. Actually, procrastination regarding obtaining policies is always costly: premiums always increase as a person gets older.
Sometimes a customer chooses to convert the guaranteed term life insurance policy into a permanent policy. (Other names for this type of policy are whole, universal, or variable life policies.) The difference between term life and a permanent policy is that the latter is designed to provide a lifelong protection. This type of policy builds a cash value, which term life policies usually do not provide. However, permanent life insurance does usually cost more than term insurance. This is often the main reason why people do not choose this type of policy in the first place. It would be prudent to check to see if this conversion from term to whole life is an option with the particular company under consideration. Some policies do not include this provision.
Some Christians may wonder if they should even have life insurance policies in the first place. It may seem like a lack of faith to plan for the event of a tragedy. However, Christians and nonbelievers alike may suffer unexpected illness or death, and it is prudent to make provisions for such possibilities, especially in a situation where young children or dependents are concerned. Some people may be responsible for children who, because of some incapacity, may never be able to support themselves. Still more may be wishing to provide for parents or relatives who require some sort of long-term care. In each of these cases, as long as the motivation is a loving desire to provide for the needs of others (and not a fear of what the future may bring), maintaining a guaranteed term life insurance policy is a sensible and loving provision.