Discount Term Life Insurance
Obtaining discount term life insurance should be considered even by those people usually preferring to pay full price for an item; in this case, there are steps consumers take that make acquiring the discounted policy a smart economic choice while still competently addressing the needs of those who will be left behind. Instinctively, the protective emotions felt at the thought of loved ones surviving a sudden death tempts even the thriftiest person among us to consider the most expensive policy. Notwithstanding, once these emotions are under control, there is the chance for common sense to prevail. And thus it is at this point that self-evaluation coupled with careful investigation of discount term life insurance reveals a way of providing well for those loved ones while paying the lowest possible premium. The insured's survivors who will benefit by receiving the proceeds of the policy are also called beneficiaries. For the most part, the person paying for the policy is also the policyowner. But it can happen that a relative or even a corporation is the policyowner, or policyholder.
Life insurance is the only type that takes the entire family into account. "And out of the ground made the LORD God to grow every tree that is pleasant to the sight, and good for food; the tree of life also in the midst of the garden, and the tree of knowledge of good and evil."(Genesis 2:9). Whole and term insurance are the two basic forms to choose from, and the price of a policy is known as the premium. Already as soon as a person takes both price ranges into account, they initiate the discount process. That is to say,consideration of these respective ranges immediately rules out whole life. This is because whole life, which pays whenever the insured dies, is the more expensive policy. In this case, a person can choose to make premium payments only for a specified number of years. This type of whole life is called limited payment life insurance. Otherwise, the consumer selects what is called a straight life policy where premium payments are made during the entire span of the insured's lifetime. Term life, on the other hand, only applies to a death occurring within a specific period of time. As a rule, the terms in question are either 10 or 20 years, and if after this chosen term the insured is still alive then this kind of policy expires and has no further value.
Next, follows the search for acquisition of just the right policy in order to further that initial discount. Accordingly, there are several self-evaluating factors that should be examined, such as age, health, occupation and hobbies. It is best to acquire the discount term life insurance policy while the insured is still young. First off, even though there will be some increase when the policy term runs out, still there is the economic satisfaction of knowing you started out with the least expensive policy. By the way, it is also wise to acquire asset insurance while still young because insuring the family home, for instance, guarantees your loved ones a place to live after you pass on. And health, coupled with age, must also be considered because the risk of poor health increases with age. In other words, the poorer the insured's health, the higher the discount term life insurance premiums will be set.
Also, protection of your family's future income possibilities is advised. For example, taking childcare into your calculations will enable the surviving spouse to continue competing in the work force. In general, occupation plays a part in the self-evaluation of discount term life insurance: the risk, or peril, connected with how you earn a living will also influence the premium level. For instance, lower premiums favor white collar desk workers because of the lower level of risk involved with their jobs. Also hobbies play a part, as the amount of peril involved with extreme sportspeople or mountain climbers differs greatly in contrast with those playing badminton or collecting stamps.
Moreover, there are ways to investigate the general discount term life insurance situation, such as comparison shopping for quotes. Various websites stand ready to assist the consumer with this endeavor. These sites promote the value of their services by informing that different companies have different reasons for being able to offer the specific discount quotes. Furthermore, they stress that it is important to examine just how that discount term life insurance quote was arrived at. And too, they advocate checking out the company's history, for example its stability, in order to properly assess the risk or benefit of engaging a policy with them. And naturally, it is important to exercise self-regulation when approaching a company because a person's acquisition should not be too little, but neither should it be too much. After all, it is very likely that a company will attempt to provide as much as the consumer will agree to purchase. Also, keeping an eye out for 'price breaks' in the insurance market is a good idea. Furthermore, whether or not you wish to have a waiver of premium included in your policy is also important to determine. In case of the insured's total and permanent disability, the inclusion of this waiver means that the premiums will no longer be charged. Finally, calculating a realistic shopping ratio taking into account an individual's total income required to afford the level of coverage desired is extremely important.
As has been said, acquisition of a policy is meant to alleviate the economic shock of a sudden death. And exercising foresight helps prevent this burden from destroying the surviving family. Especially in times of economic difficulty, discount term life insurance policies are the wise solution to this sad dilemma. Taking careful and informed steps such as an honest self-evaluation of the individual situation and comparing notes on the various discount offers from a variety of companies you will reach your goal especially if that goal is the selection of an insurance policy that is beneficial to your budget as well as to your survivors.
Renewable Term Life InsuranceThe one feature of renewable term life insurance that makes it attractive to buyers is the fact that the policy can continue to be renewed, in some cases without a medical exam. As policyholders get older, obtaining coverage can be difficult due to the various health problems that can come with age. Of course, as the years pass and terms expire, premiums can rise simply because the insured individual has grown older and is considered a greater risk by most providers. Unlike whole life insurance, there is not chance of receiving a return on an investment in a term policy. Benefits that are paid to beneficiaries will only amount to the policy's face value. In addition, such coverage cannot be cashed in for a sum of money during the policyholder's lifetime. There are also limitations on these policies. Coverage cannot be renewed when a client reaches a certain age. This age could vary from anywhere between age sixty five and age eighty, depending on the terms of the policy. Some providers will allow for renewal at a later age if a client passes a medical exam. Lifestyle will also come into play, with certain habits and medical conditions contributing to any perceived risks involved with insuring a particular client. While each renewable term life insurance policy will differ according to the needs and desires of the client, these policies can offer a flexible option for someone who is interested in cost effective coverage.
These policies could be renewed annually or once every few years. When an individual is interested in maintaining coverage over the long haul, renewable term life insurance that offers a renewal option every few years might be a good choice. A policyholder who is young and in need of coverage for a short period of time might benefit from a policy that renews annually. Some providers will allow clients to choose when they would like for a policy to come up for renewal. There are benefits to both annual and multi year renewals. Annual policies are the most basic type of coverage within this category. Multi year policies can sometimes mean that a client can benefit from premiums that do not change over the course of several years. Of course, the initial cost of the premium may be higher than annually renewed policies. In some cases, if premiums are paid when they come do, a policy may be automatically renewed from year to year until the term of the policy is up. With all of these options, it is a good idea to sit down with an agent and discuss the type of policy that best suits an individual client's needs and preferences. In today's world, the cost of living can be overwhelming. Finding an insurance product that meets the consumer's needs without cutting too deeply into personal budgets is important. For some, renewable term life insurance can be the best coverage fit.
Before choosing to go with a renewable term life insurance policy, a consumer should compare this type of coverage with a whole life policy. As its name implies, whole life policies are meant to last for the entire lifetime of the insured individual. These policies will increase in value as a policyholder makes regular payments. As the cash value of these policies increases, the owners are making an investment that will have certain returns. Loans can even be taken out against the cash value of the policy. Such loans can be paid back or a policyholder may opt to make only yearly payments on the interest of the loan and allow the principle of the loan to go against the policy's accumulated cash value. Upon the death of the policyholder, a beneficiary will receive the policy's accumulated value. If a loan was taken out against the policy at some point, the amount of that loan will be deducted from the final payment. The owner of a whole life policy can also decide to cash in the policy and keep the money for themselves. The cost of this type of coverage will of course be higher than renewable term life insurance. Term policies do not offer any of the features that a policy which accumulates value will offer.
Some forms of renewable term life insurance will have a convertible feature. This feature allows policyholders to convert from a temporary policy to one that is designed to last throughout the policyholder's lifetime. However, most coverage in this category can be canceled at any time. Assessing the needs of a family as it grows and changes is an important task that cuts close to the heart. The attitude that believers should have toward each other is outlined in the Bible. And be ye kind one to another, tenderhearted, forgiving one another, even as God for Christ's sake hath forgiven you. (Ephesians 4:32)
In addition to renewable term life insurance, there are other kinds of policies within the same family. These could include level, decreasing, and annual term policies. Level policies will offer the same death benefit throughout the duration of the policy. Decreasing policies will see death benefits decrease over the term of the coverage as a policyholder ages. Annual coverage will renew each year and an insured individual may pay higher premiums as time passes. Whatever option an individual or family might chose, selecting the appropriate coverage is a decision that can greatly impact a family's quality of life and well being.