Too Much For Life Insurance?
Through EZ Term Life Insurance.com, you can expect to find quick,
easy and affordable term life Insurance. We'll help you find cheap
rates, not cheap coverage.
Term vs Whole Life: Which to choose?
When people look for
life insurance, the first type of policy they usually learn about
is Term life. Perhaps that is because the premiums are cheap while
providing high face amounts, and many people are only concerned
about protecting themselves for the immediate future. The other
option is whole life. It is more expensive, but has some benefits
that make the cost well worth while. And if purchased while you
are young, the cost is not out of reach for most people.
Buy term insurance if you have a mortgage or other large loan and
need to be sure it can be paid if you should die. Also buy term
if your primary concern is providing a good source of income for
a growing family whose lifestyle would change without your income.
The term will expire at about the time your children are grown,
but as long as you have planned for your own final expense in another
way and have made plans for retirement, you may not care if the
However, don't purchase
term insurance if you want cash value that you can surrender or
convert to a retirement instrument in later years. Also, purchase
whole life instead of term if you want to increase your assets,
or if you want a source for emergency cash (in the form of a loan).
the Term Vocabulary
When people purchase term insurance, they usually purchase "," meaning neither the premium nor the face value will change
during the period of the term. This type of term is always the best
of all the term possibilities, but if you fall for an attractive
flyer with low prices and vague language that arrives in your mail
box—look out. You may end up with either "" or "." Neither of these options is desirable, although sometimes
they are the only options available when it comes time to renew
a level term.
An annually renewable
term is term insurance for one year. You renew it—at an increased
price—every year. The premium increases get steeper as you
get older. With decreasing term, the price remains level, but the
face value drops every year, and usually ends completely by age
80 or 85.
When the initial term of Term Life insurance expires, you have the
option of renewing it. At this time, you will be able to choose
from anything the company offers, and usually with no medical underwriting.
If the company offers whole life, you may be able to convert at
least part of your term to a guaranteed whole life policy and lock
in the price to age 100. If the company does not offer whole life,
your options are likely to be annual renewable term or decreasing
term, or a policy from a different company.
Know what the
Before committing to any policy, it's a good idea to check the and to also ask what types of policies the company
offers. Even though you may be interested in a Term policy for the
moment, it's good to know what your conversion options will be in
the future. Make sure the company has options you may want.
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