Age is a prominent factor when determining which life insurance policy is most suitable for you. Term Life insurance policies base your premium off of your age. Therefore the younger you are at policy inception, the lower your future premiums will be. Age, health, and family health history are all significant factors when it comes to insurance underwriting and premium determination.
What Is Term Life insurance?
Term Life insurance is a type of policy in which the policyholder pays the policy premium over a predetermined period. Also, this insurance provides the advantage of receiving the death benefit from conception to the death of the named insured. Unlike Universal and Whole Life policies, Term Life policies do not accumulate cash value. The benefit is the affordability of the policy premium. It is ideal for young and healthy individuals who aim to provide their loved ones with financial security in the future.
What Are the Benefits of Term Life insurance?
Term Life insurance is a suitable insurance policy for most walks of life. The design of term Life insurance policies focuses on the needs and requirements of the policyholder and their loved ones.
Term Life Insurance Policies have a lifespan of anywhere from 10 to 30 years. In the event of the policyholder’s demise during the life of the policy, the full death benefit (lump sum) will be paid out immediately to the named beneficiary stated in the policy. Setting a specific period in which premium payment is required is both beneficial to the overall cost and suitable for any budget.
Riders are additional and optional benefits of Term Life policies. In other words, Riders are customizable additions to a policy that protects the policy, the policyholder, and the beneficiary. Riders include protection for disability, children, significant others, death and dismemberment, waiver of premium, guaranteed insurability, and more. Term Life policies are unique in that certain riders only apply to Term Life insurance.
Guaranteed Lump Sum
In the event of the policyholder’s death during the life of the policy, the lump sum will be paid out to the policy’s beneficiary. The lump-sum is not a result of the premium payment. The lump-sum is a predetermined death benefit that the policyholder gets to elected at the conception of the policy.
Term Life insurance is the most cost-effective and affordable of all life insurance policies. These policies do not accumulate cash value and therefore cost insurance companies less to foster than a Whole Life or Universal Life policy. Premium pricing is based on a number of factors determined by insurance underwriters. For instance, a physician’s statement and lab work is necessary to determine eligibility and rate. The younger and healthier you are, the lower your premium will be. Non-med term policies that do not require a physician’s statement are also available.
Purchasing an Insurance Policy
The most reasonable time to purchase a Term Life insurance policy is when the potential prospect is young and healthy. Underwriting guidelines determine the premium and the eligibility of the potential policyholder. Only the policyholder (the named insured) is susceptible to underwriting guidelines as it is their health that determines eligibility and rate.
Begus Insurance Group is proud to be an insurance broker in over 11 states and welcomes those who seek to provide financial security for their loved ones. At Begus Insurance Group, we are always available to offer quotes and consultations while working with your budget to determine which policy is best for you.