Annual Renewable Term Life Insurance
Annual renewable
term life insurance can help meet life insurance needs at a price that fits
within budgets. When having children or elderly dependents, coverage is a must
to provide for their needs in the event of the death of the insured. No one
likes to think about needing life insurance, but getting it may help protect
loved ones should a tragedy strike.
While there a many
different types of life policies, they generally fall into two categories: term
and permanent. Renewable term life insurance policies are just as the name
implies--for a set term or period of time, generally from one to 30 years. They
are the less expensive of the two types of policies, making them well suited
for people on a tight budget who need coverage, such as those in their
child-raising phase of adulthood. These renewable term life insurance policies
do not build equity as permanent policies do.
These annual renewal policies are some of the many types coverages that are
available. Some policies have a fixed premium for the duration of the time of
coverage. Others, like renewable policies have a premium that periodically
adjusts when renewed. Annual renewable term life insurance polices are those
which automatically renew yearly, generally with gradually increasing premiums
that go up as age does. Other policies may only come up for renewal every 5 or
10 years.
Perhaps the greatest advantage of these is their affordability. When only
paying for a death benefit and only buying coverage for a short period,
premiums will be quite low, especially compared to permanent policies. Annual
renewable term life insurance policies will have the lowest premiums of all
because the length of time is the shortest and the company is assuming the
least risk. This makes these policies a very affordable, albeit temporary, way
to cover a family's needs. Annual renewable term life insurance policies are
particularly applicable for individuals in between jobs who are experiencing a
temporary lapse in coverage.
There are many
policies from which to choose. Examining how premiums are handled is often a
key factor in the decision process. Some offer fixed premiums. These premiums
do go up annually with your age, according to a premium table that is disclosed
when buying the policy, but premiums will never rise above the figures locked
in when signing with the company. This gives the ability to better predict
expenses over the long term. Others have reviewable renewal premiums that are
reset based upon inflation and current industry standards. These premiums are
harder to predict and can rise significantly from year to year.
Ask us about these and other and policy features when comparing different
policies. Compare renewable term life insurance plans regarding accelerated
death benefits, disability waiver of premium, and accidental death benefits.
When shopping for insurance, price is not the only factor that needs to guide
the decision process. Evaluate the current and future needs and choose the best
plan for the family's needs. "Teach me good judgement and knowledge: for I have
believed thy commandments." (Proverbs 119:66)
SOME LIFE INSURANCE FACTS: