| There are two different types of life insurance, term | | | | renewal periods you will also be required to obtain a |
| life insurance and permanent life insurance. Term life | | | | physical in order to qualify for the lowest rates. |
| insurance is the easier of the two plans. This plan | | | | There are four different types of term life insurance |
| supplies you with death protection for a | | | | policies one of which is renewable term insurance. This |
| pre-determined amount of time, anywhere from one to | | | | policy will delete your need to submit to a physical |
| 30 years. If you happen to die while paying on this type | | | | when renewing your policy. The company agrees to |
| of policy your beneficiary will be paid the amount of | | | | renew your policy even if your health has declined |
| money you specified when purchasing the policy. If at | | | | however, be prepared to pay higher premiums with |
| the end of the term you are still living your death | | | | each renewal when purchasing this plan. |
| protection coverage will cease unless of course you | | | | Convertible term insurance will allow you to switch |
| renew the policy. You can purchase this policy on a | | | | from term to permanent life insurance without |
| minimum budget and it is particularly perfect for | | | | succumbing to a health exam first. Of course this |
| providing coverage while your children are still in the | | | | convenience will more often than not come with the |
| home or while paying off a mortgage or other large | | | | expense of higher premiums. On the bright side once |
| loans. | | | | you convert to permanent your premiums will not |
| This plan is merely a quick fix. It is similar to leasing a | | | | increase as with the renewal of the term plan. |
| vehicle. You pay a lower cost for the privilege of | | | | Level term insurance presents a permanent premium |
| driving the car knowing you will return it after a short | | | | for a pre-determined number of years, usually 10 or 20, |
| period of time. However, just like when leasing a | | | | and the death benefit remains the same. With this |
| vehicle there is an option to buy. If you are purchasing | | | | policy you will lock in a particular price for the duration |
| term life insurance because you need protection now | | | | of the policy. The down side to this plan is that the rate |
| but can t afford the higher payments of permanent | | | | will rise significantly if you decide to renew with |
| protection in most cases you can switch your plan | | | | subsequent level policies. |
| over to permanent protection when your situation | | | | The remaining plan is the decreasing term insurance |
| changes (be sure to verify this before purchasing any | | | | policy. Throughout the term of this policy the death |
| policy). You can also look at term life insurance as an | | | | benefit will decrease. You may start out with $250,000 |
| efficient means of protecting your family while using | | | | worth of coverage however for the first 10 years |
| your remaining finances for savings or other | | | | each year your benefit will be reduced by $10,000. The |
| investments. | | | | premiums on this policy will also vary over the term of |
| Although this type of coverage is less expensive than | | | | the policy, it is for these reasons that this policy is not |
| permanent life insurance your premiums will increase at | | | | highly recommended nor sold very often. |
| renewal periods as you grow older. Normally at | | | | |