Health Insurance Articles
The below article are written by writers and editors of Westhill Healthcare Consulting to help you better understand health care and medical insurance issues.
Term life insurance: Coverage offers simplicity, flexibility
Referred to as the simplest option when it comes to life insurance, term life insurance like the name implies is insurance for a term. This means a time period as short as a year or as long as 20 or 30 years. Its sole and simple purpose is to provide a death benefit should you happen to die during the term of your policy.
It isn't as complicated like permanent life insurance that is a combination of insurance and an investment component. In term life insurance, your term life premium is devoted to life coverage only. You can select a higher death benefit with a lower premium if you are younger and in good health.
To prevent a financial difficulty for your family, start while you are young and just starting a family. Term insurance can be a better option because in this it can provide a relatively inexpensive way to secure the coverage you need to prevent a financial catastrophe. The term would assume financial obligations such as a mortgage and vehicle payments in the event of your death.
Forms of term life insurance coverage:
ART or Annual renewable term life - The policy holder can renew the policy yearly for a set period of time, can be for as long as 30 years. Premiums are adjusted higher with each annual renewal and such policies are based on the age of the policy holder.
A Guaranteed level premium term life is an insurance that allows the policy holders to lock in an assured premium for a set period of 5, 10, 15, 20 years or more. The guaranteed level serves as a protection of the policy holders from increases due to inflation or from higher premiums - that might otherwise result from changes in the policy holder's health.
Decreasing term policies offer a decreasing death benefit over time. It gives policy holders more coverage when they're just starting out and less coverage as they accumulate savings and other assets. , the less coverage the policy holders need to ensure the financial security of their beneficiaries when they are closer they get to retirement.