Answers To Your 5 Biggest Term Life Insurance Questions
Have questions when it comes to term life insurance?
If so, you’ve come to the right place! We understand first how complicated insurance can be. From determining how much coverage is enough to selecting beneficiaries for your policy, at TermLifeInsurance.com we’ve come across it all.
Which is why we want to tackle your toughest life insurance questions. After all, there’s no reason you should be left in the dark when it comes to your coverage.
Discover answers to your 5 biggest term life insurance questions here.
1.) What is the difference between term life insurance and permanent life insurance?
Permanent life insurance provides coverage for the entire course of your life. While term life insurance, on the other hand, provides coverage for a set period of time. For example, a term life insurance policy could be a 10 or 20-year policy. In addition, term life insurance policies offer lower premiums than permanent life insurance due to the specified period of time it offers coverage for.
2.) How much coverage under a term life insurance policy is actually necessary?
The amount of coverage to get will vary by individual. A good frame of reference though is to consider the amount necessary to replace lost income. For example, calculate expenses such as your current income and monthly along with yearly household expenses including rent, mortgage, bills, food, etc. While many recommendations for term life insurance are for five to ten times your current salary, keep in mind that the amount of coverage you need is a personal decision to make.
3.) How long will coverage last with a term life insurance policy?
How long coverage under a term life insurance policy will last will depend on the type as well as the duration of the policy you select. For example, if you opt for a 10-year term life insurance policy you will have coverage for 10 years. In addition, if you purchase a 10-year renewable term life insurance policy you will have the opportunity to renew your policy after a period of 10 years. The duration of a term life insurance policy can vary greatly, but 10-20 year policies are going to be the most common you’ll come across.
4.) When is the best time to buy a term life insurance policy?
The best time to buy a term life insurance policy is well before you ever coverage. For example, if you’re a healthy male who in your thirties you’ll likely experience little trouble obtaining coverage as compared to a relatively unhealthy male in his 60s. However, age should not be the only factor in question. You should also consider your future coverage needs. More often than not, it is better to invest in a policy early on to qualify for the most affordable rates and best coverage.
5.) Will my premiums change over time with a term life insurance policy?
Whether or not your premiums will change for your term life insurance policy will depend entirely upon the type of policy you purchase. For example, under some term life insurance policies your premiums will be guaranteed to remain the same throughout the duration of your policy while for others your premiums will be subject to change over time. In many cases, you premiums are likely to increase marginally over time. However, always review a policy in its entirety before making any final calls.
Still have another question you need to be answered about term life insurance?
If so, we would love to help! Be sure to check out our Term Life Insurance FAQ section for more answers or leave your question by commenting below!
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