Saving You Money For Life

There are several types of term life insurance. The most common and the best type is a level term life policy. This type allows you to lock in cheap term life insurance for a number of years without a premium increase. That means for a specific time period your premium rate stays the same.

A less popular policy is “annual renewable term.” This gives you coverage for one year with the option of renewing it each year. The downfall to this policy is that your rates will go up every year you renew.

The final and most recent type of term life insurance to come to market is return of premium term life or ROP. Under this type of policy, if no death benefit has been paid by the end of your insurance term, you receive all your premiums back. This policy is a bit more expensive than regular term life insurance, but it gives you more than a swift kick if you don’t die.

If you have trouble finding life insurance because of illness or a troubled medical history, you can turn to guaranteed issue life insurance coverage, sometimes called “quick issue” or “simplified issue” insurance. Guaranteed issue policies require no medical exam, but you pay a higher premium in exchange for the guaranteed coverage. That’s because the insurance company takes on more risk in insuring people without knowing their medical condition. Guaranteed issue policies can require waiting periods before coverage kicks in. They might be the only option for some people. A life insurance broker can search the marketplace for a guaranteed issue policy that meets your needs.

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