Why Choose a Term Life Insurance Premium
When on a tight budget or primarily concerned with fulfilling your family’s short
term needs, purchasing a term life insurance premium may be just the right
thing for you. The great thing about it is that you are given initial coverage with
affordability, the option of attaining adjustable premiums, renewing and extending
these premiums once they expire, and the ability to convert them into a different
type of life insurance policy when you feel like going for a more permanent premium.
Going for term life policies provides you with flexibility especially while you are still
undergoing an indecisive period as to what you and your family really need for the long run.
Life Insurance Quotes by Wholesale Insurance.
A common term life insurance premium is the level term life insurance where the premium rate is guaranteed to remain the same over a
specified or given period of time. Simply put, what is being paid remains the same for the whole term or duration of coverage. This duration is
usually set to 10, 15, 20, and 30 years. Cost is averaged into the premium based on each year’s annual renewable term rate and the time value of
money adjustment made by the policy owner. The premium becomes higher when a premium’s term is leveled for a longer period.
A more simple and basic term life insurance premium is the annual renewable premium where policies last for a term of only one year. Since
insurance is based on mortality tables to compute rates, annual renewable premium rates are based on the expected probability of the policy owner
dying within that year he or she is covered by the premium. Death benefits will be paid by the insurance company only if the insured passes away
while he or she is still covered. If death happens even a day after the term expires, no benefits are received by the insurer’s dependents or
beneficiaries.
One advantage of having a term life insurance premium is that even if you are unsure with regards to what you and your family really need,
you can still insure yourself for that shorter period of time while you are in the process of decision making. For parents, this may also assist in
maintaining a family’s cost or standard of living until their children are old enough and move out. It is much more affordable than any other life
insurance policy being offered and caters well to those who are still undecided or who are more geared towards short term essentials.
DRISCOLL INSURANCE AND FINANCIAL SERVICES, INC.
Jack E. Driscoll, CFP, CFS, LUTCF, ChFC
2738 South Park Road Bethel Park, PA 15102
Phone #: (412)833-1500
Phone #: (1-800)833-1910
