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.
Group Term Life InsuranceGroup term life insurance plans are the most common life insurance policies. The process is relativity easy and usually offered to employees through the company, group or organization that they work for. The coverage is most often offered as part of a package of benefits and can be taken advantage at the choice of individuals. People commonly except the plan as they are able to receive coverage for much less than would otherwise be possible with a plan intended for an individual. Experts in the field encourage those who are offered the plan to jump onboard due the amounts of money and stress that can be saved.
A boss or supervisor of a company is the person who harbors the actual policy and is responsible for making certain that all the details and stipulations are adhered too. The document which the boss or supervisor harbors is referred to as a master contract. All the employees covered under the plan receive a certificate that serves as proof of coverage. The receipts are not actual policies but rather proof that they have sufficient coverage. Many benefits are made available to those who are part of a group term life insurance policy, including various ways that they can customize the details in order to formulate a plan that works the best for them.
Several benefits are to be had by those who are covered under a group term life insurance policy. For example, everybody has individual needs and desires, and one of the main advantages is that a person covered under the plan is able to choose a beneficiary. A beneficiary is the person, family, loved ones, group or organization that is to receive the benefits in the event of the holder's unfortunate demise. The policy is also that renews automatically, meaning that an employee will continue to receive coverage as long as they remain employed by the company that offers the plan. Also, individuals many times do not have to pay the premiums, as a boss, supervisor or head of the company is responsible for most if not all applicable premiums. The amount that is covered under the policy is usually equal to double that of an employee's yearly salary.
Included in the many benefits of group term life insurance is that of the policies automatic renewal on a yearly basis. However, employees leave a company for one reason or another, and for whatever reason, the employees do not have to lose the coverage received. The policy can be converted into one intended for an individual. The main downside is that after such a conversion the premiums have a tendency to dramatically rise in price, which makes this option one that is avoided. Other benefits include the addition of other policies under the same plan such as an option for accidental death or dismemberment coverage. Also, many employees have families to provide for and others which might rely on them to provide support. An additional package can be purchased which is intended to cover dependents in the chance that an unfortunate situation was to arise. Most group term life insurance policies offer options for flexibility in coverage options so as to ensure that everyone receives the services that best fit individual needs.
Those who are in the need for information regarding group term life insurance should look to the Internet for information. There are many financial sites readily available which offer information and details regarding the types of plans available and comparisons between group and individual plans. Many sites offer ways for those in need to contact financial advisors of extra assistance is required. Experts in the field can prove to be very helpful in assuaging any possible confusion. Those in need of coverage should look into the plans offered by employers and perhaps take advantage of the resources that are available. Many companies that offer group term life insurance also provide individual plans for people who would rather have their own plan. There are also several web sites which offer free price quotes. All a visitor to a site has to do is input some information and then they are given an idea of how much they could expect in rates.
Studies have been conducted that show over fifty percent of Americans do not have life insurance. Many might not feel like the coverage is necessary; however, one can never be overly prepared for the unexpected. Those who should seriously consider either an individual or group policy are those who are in potentially tight financial situations. An effective policy can serve to make a person's death easier on those left behind. Life can be uncertain and no one is guaranteed to live another day, "Boast not thyself of to morrow; for thou knowest not what a day may bring forth" (Proverbs 27:1). Therefore people should take precautions to protect themselves and those close to them in the case of a tragic event. A group term life insurance policy is usually good for as long as the plan is renewed. Employees who are uncertain of possible coverage should look into options for coverage sooner rather than later. All who are in need can find a plan that works best for them as most companies offer coverage and then additional options for the personalization of that coverage in order to ensure that the needs of every individual are met and peace of mind made possible.