Compare Term Life Insurance

Term life insurance provides coverage at a low, fixed payment for a limited period of time. After the term expires, the policy ends unless different payments are made.

Compare Term Life InsuranceIf the insured dies during the term, the benefit is paid out to the beneficiary. Term insurance is the cheapest way to purchase a large policy amount for the premium paid. The term usually lasts anywhere from ten to thirty years.

Our specialists at Michael Whitaker and Associates have compiled this information on term life insurance comparisons by type to help you to determine which is right for your situation.

 

Annual Renewable Term

Life insurance which is for a term of one year. The death benefit is paid by the company if the insured dies during the one year term. However, no amount of money is paid if the insured passes away after the term is over unless it is renewed. A drawback to renewal experienced with some of these policies is requiring proof of insurability. If the insured develops a terminal illness within the term, but does not actually die until after the term expires, the purchaser would sometimes not be able to renew the life insurance due to the illness. Sometimes the policy is guaranteed to be renewable, but would likely be renewed at a much higher or even very high cost. Some term life insurance is one year of coverage, and is guaranteed to be continued each year for a given period of years. Ten to thirty years is typical, or even to age ninety-five. The premiums increase as the insured ages at each renewable period and can become too expensive to make sense to keep the policy in force.

 

Level Term Life Insurance

The premium is level and guaranteed through the term, adjustment made by the insurer. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium. Most include a renewal option and let the insured renew to extend the coverage. Sometimes the insured may not be able to renew if their health deteriorates during the original term, so it is wise to carefully consider before buying, and ask the right questions.

 

For more complete information about your life insurance options, please contact us today for a free consultation.