Life Insurance...
It's not for those that die, it's for
the ones that live. There are many different kinds of Life
Insurance.
What are the principal types of life
insurance?
There are two major types of life
insurance - Term and Whole life. Whole life is sometimes called
permanent life insurance, and it encompasses several
subcategories, including traditional whole life, universal life,
variable life and variable universal life. In 2003, about 6.4
million individual life insurance policies bought were term and
about 7.1 million were whole life.
Term Life
Term Life Insurance
is the most straight-forward type of life insurance and the
easiest to understand. Term life insurance offers the
most affordable life insurance coverage for your
family. It is one of the best values in the entire financial
services arena. Where else can you go and get hundreds of thousands
of dollars in protection for literally pennies per day?
Why Term
Life Insurance?
The purpose of term life insurance is
to be sure that if you die, your debts will be paid, your dependents
can continue to live in their current lifestyle, and if you have a
family, their home and medical expenses are provided for and your
children’s education is guaranteed. Term life insurance
offers the opportunity to get the most coverage for the lowest cost
for a given period of time.
There are two basic types of term life
insurance policies -
level term and decreasing term.
- Level term means that the death benefit
stays the same throughout the duration of the policy.
- Decreasing term means that the death benefit
drops, usually in one-year increments, over the course of the
policy's term. Level term life insurance is more common and
enables you to meet long term obligations.
Decisions
There are three key considerations when purchasing term life
insurance:
- The face amount - how much protection do you
need?
- Premium - how much can you afford to pay for
protection each month?
- Length of coverage - how long do you need to
maintain coverage?
Term life is often referred to as temporary
insurance. A term life policy will only pay benefits if you or a
loved one passes during the time you're covered. You can decide on
the number of years you wish to have coverage in place and pay the
premiums for that term.
Command Financial offers many options so
that you can find a term life policy that meets your family’s needs.
You can select a face amount from $50,000 up to $300,000. The term
of coverage may be 10, 15, 20 or 30 years depending on your age. The
premium rate is guaranteed to remain level for the full initial term
at time of issue. There are even riders that provide a return of
premiums, coverage for your children as well as other options.
Unlike permanent life insurance term life
insurance does not accumulate cash surrender value, which means if
you do not die within the time you're covered, your estate does not
collect any money from the policy when it ends. However, some
companies, like Command Health, will offer conversion privileges to
permanent policies, which means you can turn your term life policy
into a "permanent" policy. With permanent policies, a portion of
your premium goes to building cash value with interest. It is
important that you consider your needs carefully along with the
options available to you before you purchase your term life
insurance policy.
With one simple phone call Command
Financial
will provide you with instant term life insurance quotes in a matter
of minutes. There’s no confusing paperwork, no physical exams and no
long waiting periods. Simply fill out the term life insurance online
quote form and we’ll call you with the lowest rates from A rated
carriers.
