ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
06.09.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Term Life Insurance Defined

Author: Bill Mason Author Ranking Blue | Posted: 03-05-2006 | Comments: 0 | Views: 182 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

Term life insurance is by far the simplest form of life insurance. Term life insurance is simply that, insurance for a term or specific period of time. It pays a benefit only if you die in the designated period of time. On the downside, it pays nothing if the policy expires before you die. It is often referred to as temporary life insurance.

Policies generally last for 5, 10, 15, 20, or 30 years. Many policies are convertible, which means that you have option of switching to a permanent life policy. The main advantage of a term life policy is that they generally have lower premiums. They are good for covering needs that may disappear in time, such as car or mortgage loans.

They also have some distinct drawbacks. Premiums generally increase with time. This means that you will be paying considerably more in your later years, when your need for protection is generally lower. Another factor to consider is that your coverage may expire at the end of your term, leaving you with nothing to show for your investment. You are essentially back at square one.

Insurance agents often recommend that customers switch term companies every couple years, in order to take advantage of promotional pricing. One should be mindful of doing this, as you will be subject to a new contestability period. A contestability period is normally two years. If you die during this period, the insurance company will likely review the statements you made on your application. If you have made any inaccurate or incomplete statements, the insurance company will likely refuse payment.

Life insurance is no laughing matter. When you are considering purchasing life insurance, please do some research first. Spend some time considering questions, and pose them to a trusted insurance broker. Be especially wary of purchasing insurance from a door to door salesman, as they are likely trying to sell term life insurance which may or may not suit your needs. After all, it is your hard earned money that is being spent. And it is the well being of your family that will be impacted by your decision.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Tags: Life, Insurance, Term

Article Source: http://www.articlesbase.com/finance-articles/term-life-insurance-defined-25865.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Bill Mason is a retired insurance salesman, and is well versed in the ways of the industry. When he is not advising friends and family on the importance of insurance, he writes freelance articles for insuranceguide101.com - an independent insurance guide dedicated to helping you understand insurance, with information about cheap auto insurance, insurance for your boat, term insurance and more.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Top 5 Factors Determining Your Car Insurance Rate
By: Bill Mason | 03/05/2006 | Insurance
Factors insurance companies take into account when determining your car insurance rate and to see why yours may differ from another person.

Life Insurance: Don't Fear the Reaper
By: J Tillotson | 18/04/2008 | Insurance
Death is a part of life, yet many people don't consider the fact that when the Reaper comes knocking, their loved ones will be left behind. Providing support for your family in the form of life assurance can help in the most difficult times by easing any financial worries they may otherwise have.

Useful Tips For Purchasing Life Insurance
By: Joseph Kenny | 08/06/2008 | Insurance
What type of life insurance coverage do you have? For many people the answer to this question is none. Millions of Americans fail to obtain even a basic life insurance policy each year and many of these people pass away leaving the financial burden of their final expenses on their loved ones.

Why Should I Go To A Life Insurance Broker?
By: Peter Crump | 10/09/2005 | Business
For, whole or term life. A broker will be able to find suitable rates for you to choose from. When you contact a life insurance broker, you can get the life insurance you.

How Smoking Can Affect Your Life Insurance
By: Shaun Parker | 20/11/2007 | Insurance
What affect has the smoking ban had on the life insurance industry?

Life Insurance: 7 Reasons Why You Might Like Life Insurance
By: Daniel Theron | 31/07/2008 | Finance
Life insurance is planned to protect your household and others who may depend upon you for financial support. Having insurance protection may secure anybody of semipermanent financial freedom and peace of mind. Here are 7 reasons why you might like life insurance. Reason #1: A life assurance policy is valuable whenever...

Life Insurance Favours The Brave
By: Shaun Parker | 22/10/2007 | Non-Fiction
A look into why Life Insurance is so important particularly for youngsters, and how to protect your property, finances and family.

Tracing Lost Life Insurance
By: Michael Challiner | 09/08/2006 | Insurance
There are billions of pounds worth of unclaimed life insurance hiding in financial institutions. But there are ways to trace this money and claim ownership to it - even if your life insurance policy has been lost or long forgotten.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Travel insurance claim denial because of family death.
By: Edward | 24-08-2008
My travel insurance claim with AIG Travel Guard was denied.  My uncle died leaving me as his next of kin, executor of his estate and responsible for handling his funeral.  He died on Friday; my trip was to start on Monday.  We couldn't have the funeral until Wednesday.  By the way, this was a 4 day cruise.  AIG says my insurance doesn't cover "Uncle".  Every other relative is covered.  I was his caregiver and responsible in every way, just as if he were my father or son.  But because he is my uncle, the insurance claim is denied.  Help me!

The Book of Life
By: mandyb | 24-08-2008
I have vol.1,4,5,6,7 (missing 2 & 3) of the first edition The Book of Life autographed edition by Robert Collier.  He has signed the first volume.  The partial set shows some wear on the bindings, mainly the 1st vol. but the others are in good condition.  No page tears or other markings.  How much would these be worth? Says copyright 1925

Dear Mr. Berr, My Great-Aunt owned a Life ...
By: John | 24-08-2008
Dear Mr. Berr, My Great-Aunt owned a Life Insurance policy, for which she had a physical certificate. It was very old (1920s, 30s/not sure of the year). My mother was the benficiary of her estate when she died in 1992 or 1993. At the time, I asked a Financial Advisor if the certificate had any value. He said it did not, but he hardly even looked at it, so I took it home. Over they ears I married, moved etc. and cannot locate the policy. I remember it being from Traveler's Insurance. I have already checked the Connecticut and New York (states in which she lived) unclaimed assets sites, but found nothing. (1) Where can I go to locate information on this policy? (2) Can the death benefit still be recovered? (3) I imagine it was a cash-value policy because of the year it was issued, so is it possible that this policy has substantial value? Thank you. John M. Loiudice

Is legal insurance any good? Im paying $9.50 every ...
By: Steven | 23-08-2008
Is legal insurance any good? Im paying $9.50 every two weeks out of my pay ckeck for my wife and myself.I can get a free Will, but I have to go to the lawyer they want me to see. .I tried to get advice on a tenant landlord issue only to be told I was only covered if I was the tenant.A long time ago they were able to go to bat for me concerning a service contract I had and they saved me about $750.00.Is it still in my best interest to be able to say I have a lawyer on retainer?

Statue for the Unborn
By: Gene Kotowski | 23-08-2008
I'm looking to have a statue to the unborn erected on the grounds of my parish church. Are there any sculpturers in New Jersey or the surrounding states that will be able to accomodate my request? 

My father was born in a town in russia called ...
By: judith wagner weiss | 23-08-2008
my father was born in a town in russia called   perscruev...after world war 11...the town was renamed...i am trying to find out what the name is now?

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Stock Market Volatility Helps In Making Money Using Stocks
By: Amit Kheterpal | 05/09/2008
Anyone who has ever ventured into the stock market would have gotten to know by now that the index can go up and down on any given date. That gyration can actually help you make good returns on the stock market.

Tips On How To Diversify Your Risk In The Stock Market
By: Amit Kheterpal | 05/09/2008
Stock market is not for the faint hearted they say. That is definitely correct and a lot of people who join the stock market bandwagon hearing stories about loads of money to be made usually are the ones who burn their fingers in the stock market very easily.

Making the Most of Your Business Banking Relationship
By: Ann Knapp | 05/09/2008
Anyone who owns a business can appreciate the need for a bank account to handle bill paying, deposits and payroll. But banks can assist business owners in so many other ways as well. In fact, having a reliable financial partner can help a business reach its greatest potential, as well as provide support during times of financial need.

10 Sound Budgeting Tips to Ensure Financial Freedom
By: Michael New Jr. | 05/09/2008
Here are 10 sound budgeting tips that will surely get you on the right track again. If you're in trouble with debt, this article is a must read!

Limited Liability Corporation: Do One And Save Your Wealth!
By: Ramapati Singhania | 05/09/2008
Limited Liability Corporation: One of the newest but BEST forms of incorporation

How Does Shared Ownership Housing Work?
By: Peter Kenny | 05/09/2008
Over recent months the mortgage market has fallen into a sharp decline as a result of the global credit crunch that swept across the nation last summer and has been wreaking havoc in the financial markets ever since

How to Improve Your Income and Cash Flow
By: Brad Griffin | 05/09/2008
You cannot have a successful business person without a suitable cash flow. If this secret is so well known, why are so many struggling businesses? When running the daily operations of a business money, or cash flow is a big challenge. I will present you 7 tips to help you improve your income and cash flow.

Pasadena, TX Auto Insurance
By: Russell Neal | 05/09/2008
Insurance carriers use what is called a community rating system to determine base insurance rates in a particular zip code based on the number of collisions and claims that occur per annum within that zip code. Even though Houston has a great many vehicle collisions, Pasadena, Texas auto insurance tends...

More from Bill Mason

Top 5 Factors Determining Your Car Insurance Rate
By: Bill Mason | 03/05/2006 | Insurance
Factors insurance companies take into account when determining your car insurance rate and to see why yours may differ from another person.

Top 5 Jobs Which Require Life Insurance
By: Bill Mason | 03/05/2006 | Insurance
A description of the top 5 jobs that it would be a good idea to have life insurance so that you and your family are covered in case something unfortunate happens on the job.

Term Life Insurance vs. Permanent Life Insurance
By: Bill Mason | 03/05/2006 | Finance
Both term life insurance and permanent life insurance have benefits as well as the downfalls.

Why Buy Travel Insurance?
By: Bill Mason | 03/05/2006 | Finance
Reasons why you should look into buy travel insurance for your trip.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below