| Term Life Insurance |  |
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| Term Life Insurance |
Term Life Insurance policies provide a check to your beneficiary
when you die. Term Life Insurance policies generally are cheaper and
easier to understand than other kinds of life insurance policies. Term
Life Insurance usually offers you the best value for your money by giving
you the biggest death benefit for your premium dollar.
Term Life Insurance covers you for a term of one or more years. It pays a
death benefit only if you die in that term.
You can renew most Term Life Insurance policies for one or more terms even
if your health has changed, although you may be required to complete a
medical questionnaire and might be refused insurance if your health is
poor. But each time you renew the policy for a new term, premiums may be
higher because you will be older. If you are thinking of buying Term Life
Insurance, make sure you can afford the premiums for as long as you want
to keep the policy. You should ask the company to show you how you could
expect premiums to increase over a 10-year or 20-year period.
To avoid yearly increases, you may want to look for 5, 10, 20, or even
30-year renewable Term Life Insurance policies where the premiums will
stay the same for those periods. These long-term policies may "lock
in" premiums for as long as you need a high level of insurance, e.g.,
until your mortgage is paid or your children graduate from college.
Most Term Life Insurance policies are convertible. You can exchange your
Term Life Insurance policy for a Whole Life or other type of insurance
policy without taking a medical exam or answering any health questions.
You may decide to convert your Term Life Insurance policy if your health
declines; it may be difficult for you to qualify for a new Term Life
Insurance policy at affordable rates. Conversion is usually allowed until
age 65. |
Source: Massachusetts Department of Insurance
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For information about Lynch Insurance please contact:
William Lynch |
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