Knowing Which Term of Coverage is Best for You
When you buy term life insurance, you are asking yourself, "What do my loved ones need, if I died tomorrow and for how long?" Think about what you and your family needs: do you need to just cover funeral and medical costs or are there serious debts that need to be paid off too? Do you want your family to receive benefits that will last them thirty years or five years after your death? Fortunately, many companies offer a wide range of term life policies that address these concerns. Here are some of the options to consider.
Which term coverage is best for you? We can help you decide!
Level Term Insurance:
This type of insurance has premiums that stay level for fixed increments of time, anywhere from annually up to 30 years depending on the company. When that term is up, so is the policy although it can be renewed, changed to a different term life insurance policy or converted into a whole term life insurance policy.
Mortgage Term Insurance:
Usually in increments from 10 to 30 years, this is one of the few life insurance policies where the premiums decrease over time. You start out with a higher premium with more coverage, to ensure that your family can pay off large debts, such as a mortgage or college tuition, and then as these are paid off over time, the need for coverage decreases, therefore, so do the premiums
Return of Premium Term Insurance:
This is the money-back guarantee of term life insurance policies. If you are still living by the time your policy is up (usually in either 20 or 30 years), all of your premiums are returned to you, minus the initial premium and some processing fees. The catch is that the premiums are higher for this type than they are for level term or for mortgage term, and the minimum coverage needed to be bought is greater.