Term Insurance Benefits

Term Insurance Benefits

Term insurance or term life insurance is the simplest and most popular short-term life insurance on the market.  It is also the most cost effective way to purchase a substantial death benefit on a coverage amount over a specified period of time. In other words,

term insurance offers the most coverage for the cheapest price. Many term policies are renewable which means you can purchase them over and over again even if your health circumstances change. There are many variables that can affect your term insurance policy.

Premium Variables

The most important factor for the insurer and the insured is the prospective policyholders health. Many insurance companies require a full medical examination and multi-generational medical history. Based on your health, age, occupation, your family medical history, and even your sex (women live longer than men), a term insurance policy will be drawn out. If you are young, healthy, have no history of hereditary illnesses in your family, don’t smoke, do drugs, and drink very little, you’ll come out with the cheapest policy. The chances of you dying during the term of your one year policy is very slim indeed and this is what insurers are counting on –renewable terms.

Renewable Term

Many people renew their policy on an annual basis. The amount of death protection you purchase stays the same but your premiums increase because of the variables mentioned above.

As people are living longer and healthier lives, term insurance provides the most cost effective short-term and long-term life insurance on the market.

Ginger Liu

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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