So you think you are too old to afford a good Term Life Policy? Think again. Many variables go into figuring your life insurance premium, and the type of life insurance policy you choose should be based on your financial needs and goals at the time. As life happens, these needs and goals are bound to change. So for many folks, a term life policy is the best option. Liveoak Agency, Inc. can help you assess your current situational needs and find the best policy for you, at the best price available.
What Is Term Life Insurance?
Simply put, term life insurance is a life insurance policy that is valid for a specified period of time, or “term.” The length of this term can be one year, five years, or up to 30 years. If the policy holder dies within the policy term, his or her named beneficiaries will receive a payout, called a death benefit. But if the policy holder dies after the term has expired, there is no payout.
Are There Different Types of term life insurance Policies?
There are two basic types of term life insurance:
- Annual Renewable Term
- Level Premium Term
Annual Renewable Term
Gives you one year of coverage at a time that you can then renew annually
Usually has the lowest annual starting premium
Premiums are not locked and will rise as you age
Level Premium Term
Bought for a specified multi-year period, i.e. five, 10, or 20 years
The premium is locked for the specified period
The premium is guaranteed never to change during the specified term
Other Variables That Can Affect Your Premium
- Amount of Coverage
- Length of Coverage
- Type of Policy