Life Insurance Comes in many forms, but the most economical and sensible type of policy is definitely Term Life Insurance.
These Policy's are sold for specified terms, which are simply the amount of years the policy is good for. Most of the Term Life Insurance policies that are sold today are for 10 or 20 years.
Term life insurance policies are sold for a specific number of years. Ten- and 20-year terms are the most common. The "term" in term insurance means the following:
If a consumer chooses a 20 year policy, a premium is paid each month for the entire 2o year term of the policy and then the policy will lapse. If the insured dies during that 2o year period the specified benefits will be paid out.
Allot of people ask me, if a cash surrender value accrues in case you want to cancel your policy. Unfortunately, the answer is no, but that is one of the major reasons the premiums are so much lower than policies with that feature. I frown on using Life Insurance policies as investment products. They are commission heavy and give very little return. We are only trying to insure your life here so let's keep the costs down. You are better off in a CD, and if you want to throw some money down the drain, go see Fred at Ed and Fred's Used Cars.
Now, once your term insurance policy lapses, you are entitled to renew your policy but because time has passed and the you are a older, your premiums will rise. So when choosing your initial term, choose wisely. Make sure you are insured during the time when you and your family require the most income to survive.
Remember, you won't be around and you need to make sure those you leave behind will have enough money to maintain the lifestyle and life goals you have planned for them. It is less expensive than you think.
Take a look here and get some quotes in under 15 seconds. The important thing is to do it. Once you have addressed your future, it is easier to live in the present.
