Finance Articles

Basically there are two kinds of life insurance policies: permanent life insurance and term life insurance. Permanent policies grant coverage for the life of the policy holder, as long as they make their payments on the premiums, and abide by other policy rules. Aside from monetary compensation upon death, a permanent life insurance policy is a kind of endowment, and can be drawn upon while the insured person is still alive.

In contrast, affordable term life insurance is often referred to as "pure insurance" because it offers only coverage for loss of life, and is not considered an investment vehicle. For this reason among others, term life insurance is generally less expensive than permanent life insurance for the same amount of coverage. Alternatively, affordable term life insurance offers more coverage for the same amount of money.

The majority of term life insurance plans provide a benefit in the event of death within a time frame of anywhere from one to thirty years. Other term life insurance plans offer coverage for the covered individual until he or she turns a given age, anywhere from sixty-five to niney years of age.

Unlike permanent life insurance, affordable term life insurance policies have to be renewed periodically, or else the coverage will lapse, like car insurance would. The pay structure for affordable term life insurance is divided up into two essential kinds: "level premium" and "yearly renewable."

Policies are available that offer coverage on a yearly basis. During the year the premium for these policies does not change, however, if you renew the policy the following year there is an increase in premium based on the age of those covered. In the beginning these yearly renewable policies are the most affordable option, however after this time the premiums may increase dramatically.

Like yearly renewable policies, the premium on most life insurance policies with longer terms does not change while the policy is in effect. Policies in which the premium remains unchanged during the entire term of the policy are considered level premium policies. Because the premium stays level for a longer period of time, these policies often offer the most coverage for the least money overall.

But some term life insurance policies that have longer terms assess escalating premiums, often in increments of five to ten years. Before you buy life insurance of any kind, it's smart to review carefully the insurance rates as opposed to the value of death benefits.

Quickly receive up to 5 FREE affordable term life insurance quotes from the major life insurance providers by completing our short 4-minute form at Life-Insurance-Quoter.com. Just a few minutes of time now could save you thousands of dollars over the life of your insurance policy. We've established relationships with major insurers so no matter which one you choose, you'll have a designated local agent to speak with anytime you wish. Visit us now and discover just how low your life insurance rates can be.