What Is The Secret Of Term Life Insurance??!

Term life insurance is a type of life insurance coverage which is only valid for the term of the life insurance contract.

In a nutshell, when you purchase term life insurance, you and the insurance company enter into an agreement to provide you coverage for a specific term, the length of the agreement, for a specified premium each month or year.

If you’re the type of person who:

• just wants a “no frills” full coverage;
• just wants to get the highest value coverage for the lowest cost; and
• is not engaged in a dangerous hobby or profession…

term life insurance is for you.

It’s because of this simple rule above that, with the Consumer Advocate Strategy, you’ll be able to save your precious dollars and still get the best coverage you can!

So stay with me and read on…

What Are the Benefits of Term Life Insurance?

One of the benefits is the lowest prices and rates out of almost all life insurance coverage types.  The reason behind this is because there is no return cash value once the term’s maturity is reached unused, unlike many of the other life insurance types.

What’s Not Covered in Term life Insurance?

Term life insurance, just like every other insurance type, has certain exclusions which are not covered.

Many life insurance providers require a form which has numerous questions about your occupation, activities, and hobbies, and your premiums are based on an assessed risk according to your answers, among other factors.

If you engage in high risk activities or work in a high risk occupation,you will have higher rates than people who do not. If you are a commercial pilot, or you fly planes as a hobby, you are at a higher risk for death than an accountant or lawyer.

Your premiums are based on your risk factors, and the more risks you take the higher these premiums will be.

So How Does The Low Cost Justify Itself Again?

Term life insurance offers better life insurance costs than other types because the policy only serves to be in force during the lifetime of the policy. With no extra benefit to it after it expires, you are charged a way lower rate than the other policies that offer other “value-added” features to sweeten the deal.

Term Life insurance is a “no frills” insurance policy and its low prices serves to emphasize that point.

Two Types of Term life Insurance

Two types of term life insurance available are annual renewable term life insurance and level term life insurance.

Annual renewable term insurance is contracted for a period of one year, but there is a guarantee that the policy can be renewed every year for a specific time period, usually from ten to thirty years.

The renewable term may rarely be offered until age ninety five. Every term the premium rises to reflect the age of the insured.

This means that as you age, a renewable term insurance premium rises to reflect the risks involved in covering your age bracket.

Level term life insurance is a more common type of coverage, and the premium for this coverage stays the same each year for the specified number of years.

Common lengths for this type of life insurance can be ten years, fifteen years, twenty years, or thirty years, and during this term your premium will never go up.

The length of years included in the term determine the final cost of the premiums, because the risks for all the years involved in the term are factored in and averaged.

For example, the premiums for a thirty year level term life insurance policy will be much higher than the premiums for a five year level term life insurance policy, because the risks of you expiring in the next five years is much smaller than the risks of you expiring in the next thirty years.

Finally, The Consumer Advocate Strategy On How To Use Term Life Insurance To Your Advantage (Save $$$)!!

Insurance premiums are based on risks, no matter what type of insurance it is, and life insurance is no different.

So little Consumer Advocate me came up with a great strategy on how to use term life insurance to your benefit.

It’s so simple and saves you so much money, you’d be slapping your head in amazement!

Let’s get to it!

No matter what your age is, here’s what you should do:

• Make an inventory of your family’s income and expenses
• Calculate how much you need your family to live comfortably for at least 6 months.
• Shop for the best level term life insurance online. The best term life insurance quotes are usually made online.
  • It’s amazing but you can get discounts of up to 70% off online compared to walking into an insurance office!
  • Make sure you answer truthfully to qualify.
• Choose companies and compare rates. Usually you get a quotes between 5-30 years like so:

Below are the average yearly rates quoted for 20-year-old men in New York in average health.

Average annual premium for 5 year term … US$144 per $100,000
Average annual premium for 10 year term … $133
Average annual premium for 15 year term … $154
Average annual premium for 20 year term … $166
Average annual premium for 25 year term … $216
Average annual premium for 30 year term … $187

• From the list above, it’s better to choose a 30-year term life insurance worth $187 dollars a month, which amounts to $5,610 for the whole term.

• • Make sure you read the fine print and get as wide a coverage as you can
  • It’s a known fact that the earlier you start buying life insurance, the lower rate your premiums will be.
  • It’s a known fact that the later you start buying term life insurance once more, the higher the monthly premium will be.
    • Not to mention the inflation and economic circumstances will cause any new premium to skyrocket.

• Work smart, work hard and work with confidence and build a better life for your family knowing full well, you have everything untoward covered for the next 30 years.
  • As your income grows, you may even consider buying more insurance, and even invest your money to increasing your financial intelligence.
  • Covering yourself at a fixed low rate will insulate you against inflationary premiums.

Remember, term life insurance works best as part of a larger strategy in building your financial fortress. It acts as a shield in your early years while you work to increase your family’s fortunes. I recommend you at least check out my recommended links on the right sidebar which gives free term life insurance quotes to get you started.

More Power To Us,