If you know that your employers are offering you a term life insurance and it is only them that can offer it, it is not true. One can buy an individual policy for himself to cater to his family’s financial positions after he dies. Many different life insurance companies offer these types of individual term life insurance policies. The catch is to find the best insurance policy for you and your needs. It is rather difficult, so one may know what types of term life insurance policies are available.
Types of term life insurance policies
Three different types of term life insurance policies are available with any life insurance provider. One can decide on the basis of his requirements and choose the best aspect containing insurance policy out of them.
They are as follows :
Level Term Life Insurance
Level term life insurance policies have a coverage period of five years to twenty years at a max. These policies relatively cheap in their coverage period and one can easily afford them. They linger on for a longer period of time than just a couple of years to only one year. However, the cost the policy carries is a bit expensive than the different renewable policies annually for a couple of years at the start. After that, they remain constant in their payments and never reside from their constant rate. There are different insurance policy companies that offer constant premium and payments once they issue the policy to a person. This does not affect the financial status of any person following the policy.
Depreciating Term Life Insurance
This type of term life insurance is used or bought, to cover a mortgage loan due to the fact that the person buying the policy may die earlier than expected. It is like a premature death. The total money considered for the benefit of the beneficiary actually depreciates, because the loan amount on the mortgage has to be paid off. It is a gradual process and quite tricky so the depreciation comes as a blow to one’s life. However, for husband it is a good policy when you know your wife will be safe after you in paying the mortgage loan and still have the policy to some extent. These policies are quite cheaper and so their popularity has increased as well as their buying.
Annual Renewable Term Life Insurance
These are the policies that have the hassle of going through renewing them every year. However, they are really good and cheaper. They offer small coverage periods and easy layoffs if you want the insurance for a smaller period of time. Examples can be the tuition funds, college fee etc. annual renewable term life insurance is a great idea for those people who want to see seem them fully secured.
After reading this article you will be able to find different types of term life insurance.