10 Year Term Life Insurance
A 10 year term life insurance policy may be one of the most inexpensive indemnity products on the market today. Of course, life or living insurance doesn't ever ensure that living will go on for the insured, but rather pays money to living people after the death of the insured. And in many cases, the money that is received from policies such as a 10 year term life insurance agreement does ensure that normal life can proceed for surviving family members. Any living insurance policy that is deliberately enjoined to make lives easier for family or a loved one is a real gift of love. Those receiving life insurance proceeds are often able to continue school, start new businesses, keep their homes by paying down or off mortgages and achieve many other important goals or needs.
There are many competing companies for the insurance business of American consumers. Using actuarial tables, the companies charge premiums based on the probability of death over a period of time. The longer the term is for coverage, the more expensive the rates will be based on the variable of increased probability of things to affect one's health, etc. A 10 year term life insurance policy may be of little consideration to younger generations, but for those who have lived for some decades, the march of time is swift and sure. The Bible speaks to this very issue: "Whereas ye know not what shall be on the morrow. For what is your life? It is even a vapour that appeareth for a little time and then vanisheth away." (James 4:14)
Term life insurance is one type of living coverage that is offered by the many indemnity companies of the world. The other very distinct living coverage product is the whole indemnity policy, and while there are hybrid policies that enjoin the two, there remains in marked contrast to one another, the term and whole types of insuring tools are the flagship policies that an individual can buy. The word term implies that there is an ending date on the calendar to the coverage so a 10 year term life insurance policy does have a time span of one hundred and twenty months. The individual must renew the policy or will no longer have coverage after the expiration date. Term or defined parameter coverage is the least expensive of all policies providing death benefits. This type of plan provides no money at the end of the defined parameter period as opposed to whole life coverage.
A whole indemnity policy is one in which the company pays a face value death benefit, but it is not based on a defined parameter of time. This policy does not expire as would, say, a 10 year term life insurance policy. Rather, the plan matures in actual cash value until paying for the face value coverage of the agreement. Let's take a $50,000 whole life policy. Costing a 22 two year old seventeen dollars a month, the policy will pay that face value money to his parents should he unfortunately pass away. But if the young man keeps the policy intact for thirty years and pays the premiums faithfully, he can end payments and have a $50,000 policy until he does die, or cash out for perhaps six to ten thousand dollars, depending on the policy numbers.
10 year term life insurance premiums are as varied as spring flowers and all are contingent on age, health, and sometimes occupation of the insured. Smoking and weight both play a key role in deciding how much a person will pay in premiums for a 10 year term life insurance policy as well as the medications a person is taking. Lying to insurers to receive lower premium payments doesn't work verification with doctors and records will nullify a death benefit claim. Term insurance can be half the price or less the whole indemnity type of policy, and should be considered over whole type as part of a savings and investing program. Consider what financial experts suggest.
One should first look at what the traditional whole type policy costs for the face value desired. The reality is that whole type of policy does accrue savings, but at a very paltry interest rate. Once the amount has been firmly ensconced in the mind, buy a defined parameter policy for that same desired amount and invest the rest that would have been spent on the other in stocks, bonds, CDs, money market or even a regular savings account. Coverage plus a slowly accruing nest egg can be gained when a smart investing program is coupled with a defined parameter indemnity plan. So when should a person get a 10 year term life insurance plan?
Perhaps a young responsible single person might want a small plan to help out with funeral expenses should he or she be killed. Funerals now cost over five thousand dollars, and asking already grieving parents to also cover this expense might be too much for them. When a person is young parent is the perfect time to get one's first defined parameter policy to cover at least five years of income loss should a loss occur to a breadwinner of the family. From then, it may be better to get a defined parameter policy that spans as many as three decades to take one into retirement. Attempting to get life coverage after the mid 50's can be brutal on the pocketbook. And beyond the age of seventy, only a few companies are willing to insure, and the prices are very high.
Supplemental Life InsuranceSupplemental life insurance can be a euphemism for several different kinds of products available to almost everyone. These types of policies are meant as add-ons to regular policies when the coverage may not be quite complete enough for the customer. These add-ons are not riders of regular insurances, but rather additions to them that regular insurances wont provide. They wont provide them because the additional coverage usually carries more risk, and so the risk is transferred to the customer when offered outside the normal scope of life or health insurance provided by an employer. Keeping add-on coverage outside the normal scope of regular insurance offerings serves to help keep premiums low and affordable for everyone.
Supplemental life insurance is available for the individual at varying costs, depending on the health of the individual, how much coverage is needed, life expectancy and the health of the purchaser. In all cases of individualized insurance purchasing, the supplemental coverage will most likely cover funeral costs and everyday living expenses when someone passes away. Coverage could be accidental death coverage, where in the event the policy holder dies in an accident, the company will pay a stated amount of benefit depending on how much coverage was purchased. For example, the benefit may pay $20,000 to $80,000, but may expire after a certain age. Be sure to understand the limitations on the policy and when it expires. Then there is coverage available that will pay out a benefit if the policy holder dies of a terminal disease, becomes disabled and needs a nursing home, and other similar types of health problems. These policies will pay out benefits while the policy holder is still living as well. Companies can insure up to age 100 and beyond. These days the extension of the policies are getting longer, simply because people are living longer than ever as time goes on.
As is the case with most supplemental life insurance, the cost will vary depending on what area of the country in which the purchaser resides. Insurance companies use actuarial tables which calculate risk on lives, and geographical areas are considered when quoting rates for policies. This is why it is important to get quotes from several companies, rather than relying on one. The more providers that are called, the more likely it is the customer will find a cost that is acceptable to the budget. Remember that younger, healthier people will get the best rates, especially if they are non-smokers, vegetarians, and have a normal body weight. Ask the provider about what other types of discounts may be provided - there may be quite a few. If a covered individual becomes disabled at a very young age, the company may even waive the premiums up to a certain age, such as 70. "Though I walk in the midst of trouble, thou wilt revive me: thou shalt stretch forth thine hand against the wrath of mine enemies, and thy right hand shall save me" (Psalms 138:7).
Surprisingly, supplemental life insurance can serve as a means to saving for retirement. There is no limit to how much can be saved via a life insurance policy. Think about it - the money going into the policy can be saved tax-deferred for many years, and depending on the type of coverage, can even be tax free to the beneficiaries as well. In these days when it is harder than ever to save due to hard economic times, using life insurance as a retirement savings vehicle could be the life-saver many are looking for but had not considered up until now. Social security may not be around when the average middle-aged individual is ready for retirement, and because saving is so difficult, making regular contributions to 401(k) plans or IRA's can be just a dream. Hopefully most people have saved or are saving in one of those venues. Adding a supplemental life insurance policy to the mix could be the difference between difficulty and comfort.
To figure out how much supplemental life insurance is needed, add up all the current debt owed right now, figure in how much a funeral will cost and whether or not there are any dependents who must be cared for after the policy holder's death. Think about car loans, student loans, credit card balances, etc. This is the amount that needs to be covered. Do not forget about how much it will take to pay off the house, as this is the biggest debt or expense most people have. For most, a policy worth $250,000 would be a minimum amount in order to meet expenses and have a little left over. Another benefit to supplemental life insurance, if it is a whole life policy, is that loans can be taken out if unforeseen expenses crop up in an emergency. However, if the loan is not paid back by the time withdrawals begin, the amount of the benefit is reduced by the amount owed.
Finally, most companies providing supplemental life insurance coverage will ask for proof of prior or other coverage at the time of the application. Applying for benefits outside of the application period, especially through employers, will mean a letter of credibility must be obtained from the insurance provider in order to obtain the supplemental coverage. Simply calling the provider of the current policy provider should yield the needed document, which can then be forwarded to the company to which the customer is applying for supplemental benefits. If the letter cannot be provided, then there will most likely be a six month or longer waiting period before the benefit kick in or become effective. Make sure the terms are well understood so that there will be no surprises.