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Life Insurance Explained: Term Insurance Insurance (Part 2 of 5)

Posted on February 25, 2008 at 1:56 pm 
Filed Under Insurance Planning, Personal Insurance

Today marks the second installment of our “Life Insurance Explained” series.

 Let’s take a look at how Term Life Insurance works and what situations it is most suitable for.

The basic concept you need to know when it comes to owning Term Life Insurance is that you are in effect “renting” insurance the same way you would rent an apartment or a home. The reason I say this is that your costs are much lower in comparison to other life insurance options, and your primary benefit is the protection and coverage you applied for. There is no cash value or way to “get back” your premiums, but it will be paid out on death assuming it is still in force.

Your Take-Away: Term Life Insurance is most commonly used for short term needs, such as a mortgage or debt requirement, and is also used when monthly cash flow is an issue. In most cases, this is a product that is made for the masses as it is affordable for almost anyone and will provide the protection and coverage needed which is the entire purpose of life insurance.

If you are looking for Mortgage Insurance, this is unqestionably your best option and in some cases it can save you hundreds of dollars a year over the banks offer. Term Life Insurance is a true life insurance policy and will provide exactly what you need when you buy life insurance, protection from an unexpected death.

Until next time, have a Magnifcent Monday!

Chris & Elisseos
 

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Comments

2 Responses to “Life Insurance Explained: Term Insurance Insurance (Part 2 of 5)”

  1. Hadley on February 25th, 2008 5:38 pm

    I do agree with both of you regarding the benefits of term life insurance to protect your mortgage.

    Level term life insurance is commonly used to provide proceeds to cover your outstanding mortgage.

    Level term offers guaranteed rates, coverage that does not decrease over time, and the most affordable protection that provides life insurance proceeds to your beneficiaries, rather than the mortgage company.

  2. help-with-debt-problems on March 2nd, 2008 8:25 pm

    Relief Debt…

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