There are different types of insurance policies for all kinds of people. Some of them are expensive while there are a few others that can be quite economical. Term life insurance policy premiums are much cheaper than cash value policies. These kinds of insurance policies will take care of your beneficiaries after your death. If you are looking for a low cost term life insurance policy, here are a few basic things you should keep in mind.

If you purchase a term life insurance policy with a specified time period, you will be paying the premiums for that certain period of time. During this time, if you die, your beneficiaries will receive a death benefit.

Term life insurance policies, like all other types of insurance policies, come with certain benefits as well as loopholes. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to “convert” to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.

Term life insurance policies do not come with any tax benefits like universal or whole life insurance policies. This is good for someone who needs a life insurance but cannot afford the higher premiums. The points given below will help you in deciding whether a term life insurance policy is good for you.

1) If you are on a fixed budget and cannot afford higher premiums, then a term life insurance policy is the best choice
2) You are young and in a good healthy condition.
If you need a simple, low cost life insurance plan in order to protect your beneficiaries, then this kind of insurance will be the best fit for you.

Consult your insurance agent for a term life insurance policy and get all your doubts clarified before purchasing one.

This entry was posted on Tuesday, September 1st, 2009 at 4:33 pm and is filed under Insurance, Term life insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

1 Comment

  1. September 4, 2009 @ 6:17 pm

    Great info Charles. Term life insurance plans are especially important for children as they grow older. As the parent of the child, you can lock in a low rate that they’ll still be able to pay when they grow up.

    Posted by Mike Donnelly