What Is The Most Affordable Type Of Life Insurance?
Life Insurance policies come in all shapes and sizes. Whole Life.
Term Life. Universal Life. Variable Life. And More! If your goal is obtaining the maximum amount of life insurance for the lowest possible premium...then "term insurance" is the most affordable option.
What Is Term Insurance?
Term insurance is the simplest and most inexpensive form of life insurance. It provides the greatest immediate death benefit for the least amount of money spent. When comparing term insurance to other forms of insurance (such as whole life or universal life), term premiums are always less costly.
When taking on new debt, such as a home purchase, term coverage is often your best option. Protecting and insuring lost income in the event of an early death is also one of the most important reasons to own term life insurance.
What Are The Different Types Of Term Insurance?
"Level-Term" coverage insures you for a specific time period-usually
10. 20 or 30 years. During this time, your rate can be guaranteed not to increase, regardless of any change in health. You are not required to keep the policy any length of time.
Thus, if you purchase a 20-year term policy, and decide to cancel the contract after 7 years, there will be no penalty and no obligation to keep the policy. However, if you still need life insurance coverage after the contract has expired, you will have to either re-apply for new coverage or possibly renew the policy at a very high rate.
"Annual-renewable term" insurance is less expensive in the earlier
years. But premiums increase every year, and generally, after about 5-10 years, the premiums will be higher than a comparable "level-term"
policy that was purchased at the same time. If your need is very short-term or affordability is a major concern, than this type of coverage may be the most appropriate.
How Much Does Term Insurance Cost?
Term coverage costs depend upon many factors. Your age and health condition will greatly impact the premium. As an example, rates are substantially lower for a 30-year-old than a 55 year-old. Existing health conditions can increase the rate.
Naturally, major health issues such as diabetes will have a much larger impact on the rate than less serious conditions such as high blood pressure or asthma. Other factors that increase the rate include smoking status and BMI (Body Mass Index) readings.
A healthy Ohioan non-smoking 40 year old male can purchase $250,000 of coverage here for approximately $12 per month (rate guaranteed for 10 years). The rate will increase to $17 if the rate is guaranteed for 20 years. For $500,000 of coverage, the monthly rates increase to $17 and $25 respectively. Of course...smoking and some medical conditions can increase the rate. And female rates are approximately 10% less.
Term Life. Universal Life. Variable Life. And More! If your goal is obtaining the maximum amount of life insurance for the lowest possible premium...then "term insurance" is the most affordable option.
What Is Term Insurance?
Term insurance is the simplest and most inexpensive form of life insurance. It provides the greatest immediate death benefit for the least amount of money spent. When comparing term insurance to other forms of insurance (such as whole life or universal life), term premiums are always less costly.
When taking on new debt, such as a home purchase, term coverage is often your best option. Protecting and insuring lost income in the event of an early death is also one of the most important reasons to own term life insurance.
What Are The Different Types Of Term Insurance?
"Level-Term" coverage insures you for a specific time period-usually
10. 20 or 30 years. During this time, your rate can be guaranteed not to increase, regardless of any change in health. You are not required to keep the policy any length of time.
Thus, if you purchase a 20-year term policy, and decide to cancel the contract after 7 years, there will be no penalty and no obligation to keep the policy. However, if you still need life insurance coverage after the contract has expired, you will have to either re-apply for new coverage or possibly renew the policy at a very high rate.
"Annual-renewable term" insurance is less expensive in the earlier
years. But premiums increase every year, and generally, after about 5-10 years, the premiums will be higher than a comparable "level-term"
policy that was purchased at the same time. If your need is very short-term or affordability is a major concern, than this type of coverage may be the most appropriate.
How Much Does Term Insurance Cost?
Term coverage costs depend upon many factors. Your age and health condition will greatly impact the premium. As an example, rates are substantially lower for a 30-year-old than a 55 year-old. Existing health conditions can increase the rate.
Naturally, major health issues such as diabetes will have a much larger impact on the rate than less serious conditions such as high blood pressure or asthma. Other factors that increase the rate include smoking status and BMI (Body Mass Index) readings.
A healthy Ohioan non-smoking 40 year old male can purchase $250,000 of coverage here for approximately $12 per month (rate guaranteed for 10 years). The rate will increase to $17 if the rate is guaranteed for 20 years. For $500,000 of coverage, the monthly rates increase to $17 and $25 respectively. Of course...smoking and some medical conditions can increase the rate. And female rates are approximately 10% less.