Term Life Insurance, Term Life Insurance — Is The Cheapest Coverage The Best For You?

by Ivon T. Hughes

Term Life Insurance — Is The Cheapest Coverage The Best For You? Many internet searches reveal that you can get free term life insurance quotes and premiums that are up to 70% off. With so many options available, is it always in your best interest to get the cheapest term life insurance coverage? And what does "up to 70% off your term life insurance" really mean? Cost effective term life insurance is simply basic life insurance that pays out a lump sum after your death. The premiums for these polices are generally low because the policies are like your house insurance; there is no cash value. There are two basic types of term life insurance — decreasing term life insurance and level term life insurance, but decreasing term life insurance is gradually being phased out. What is Term Life Insurance? Level term life insurance policies are not as cheap as decreasing term life insurance but do a better job of protecting you. Both of these life insurance policies have many similarities. The reason for the different price structures are that level term life insurance policies, owned by you, can pay off your mortgage and still leave a pay out for your family. The group term life insurance you buy through your bank, has a decreasing balance but keeps the same premium. A cheap decreasing term life insurance policy pays only the bank a lump sum to clear your mortgage; it doesn’t leave any money to pay those you leave behind.
Term Life Insurance - Mortgage Priorities If paying off your mortgage is your priority, then you should look to level term life insurance. You might have a 20 year mortgage but a 10 year level term life insurance policy. As you will need to renew the term life insurance policy at the 10th anniversary, you might want to consider making it a 20 year term life insurance policy.
About The Author: Ivon T. Hughes of the Hughes Trustco Group is a licensed Insurance Broker. Author of The Life Insurance Handbook. Get a FREE Copy TODAY!
Email:info@trustco.ca Web:http://www.hughestrustco.com
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You may want to try these websites for additional information
http://www.statefarm.com/insuranc/life/term.htm
http://www.quickquote.com/lifeInsuranceResCtr.html
http://www.insure.com/

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