Getting a Term Life Policy
When you need affordable life-insurance coverage, term policies are likely to be your primary option. You can get quotes for these policies by going through an insurance agent or one of the online insurance brokers. Look at the costs of the premiums, as well as the amount of the death benefit your beneficiaries will receive. Although you may not have to undergo a full physical to be approved by the insurance underwriter for the policy, you will be asked questions about your medical history.
Basics of the Policy
Term life-insurance policies provide coverage only for a specified length of time. That term can be anywhere from 1 to 20 years, depending on the policy you select. During the term, your beneficiaries will be entitled to receive the specified death benefit if you pass away. For example, if you have a 10-year policy for $100,000 and die during the ninth year, your beneficiaries will receive the full $100,000. Failure to pay the premiums, of course, will cause your policy to be canceled before the end of the term. Because the insurance company is betting that you will not die during the term, the insurance premiums are more affordable, because the risk to the company is lower.