Term Life Insurance
Term Life Insurance is the most affordable life insurance. Term Insurance is a temporary insurance for a set number of years, called the term of the policy.
The cost of term life insurance has many variables including:
• the age of the applicant
• lifestyle choices such as weight, smoking status and driving record
• medical conditions
• the length of the term of the insurance
• the amount of insurance required
As a temporary insurance, term life insurance is an excellent alternative to debt insurance. Banks and credit card companies offer insurance coverage on credit cards, mortgages and loans. The only problem is that you are paying to protect the bank and not your family. You could buy extra term life insurance that your loved ones can use to pay off the bank debt. Yet they do not need to. They could choose to keep the money, use it to pay the monthly payments and have an emergency fund.
Disability Insurance and Critical Illness insurance offered through the bank has alternatives as well. You can choose to have a policy you own and control. In the case of a disability or critical illness you will need the money more than the bank does. You can receive the benefit and pay the smallest payments to the bank and use the money where you need to. For example, if you suffer an injury and become disabled and you need to renovate your home.
Some Term Life Insurance policies may offer a conversion option. This feature allows the owner of the policy to convert it to a permanent insurance. This option is offered for a certain period. The insured person would not need to prove good health. This is a valuable option for a person who gets diagnosed with a disease or illness. The insured person would be certain to have insurance for his lifetime at a fixed cost.