Term Life Insurance

Nobody knows what the future may hold. Good times or bad we want some stability in our lives. We want to be able to rely on someone or something while getting through the tough period. We know that nothing should be taken for granted. Losing life hurts our family: husbands, wives and children. It brings heartache and emptiness, as well as a lot of financial troubles.

That is why we buy Life Insurance. It has two types: Permanent and Term Life insurance.

Term life insurance covers only a part or term of our lifetime and pays a death benefit only if we die during this period of time. It is perfect for covering non-permanent needs, such as a 15-year mortgage and any costs for kids while they are growing up. Another difference from Permanent Life insurance is that Term Life does not build cash value.

There are two types of Term Life insurance:
1) annual renewable term (ART) – allows you to pay the premium for 12months every year. It can be renewed for a specific period of years, usually until you are 70 or 95 years old. There is an annual price increase as well;
2) level term – allows you to pay the same premiums for a 10, 15 or 20 years period. It may or may not be guaranteed to renew your policy. But if it does you may need to get a medical exam to prove you are still healthy, so you can reapply for the lowest rates, otherwise the renewal price is sky-high.