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Why 5 Year Term Life Insurance
5 year term life does have it's place in the portfolios of many life insurance buyers and can fulfill a very important need. If you have a short term need for life insurance then this type of insurance may be for you. If you find it necessary to take out a loan for a short period of time a five year term policy on your life can assure the lender that if you should die before the loan is repaid they will get back their money. Certainly that is a good reason to buy this type of insurance. You may take the loan to pay for a college education either for yourself or a child or grandchild.
The face amount of the 5 year term policy remains level for the duration and so does the premium. Even though it is initially taken out for 5 years some companies allow you to continue beyond the initial 5 year period at a higher premium. The death benefit is more often than not free of income taxes. You may convert your policy to permanent insurance in the future.
Term Life Insurance: Find Cheap Quotes And Best Plan In One PackageTerm life insurance is a relatively easy to understand concept. Term life insurance policies stay in effect for a predetermined length of time (the term). During the term of the policy, the insured pays a regular premium. If, at any time during the term, the insured should die, death benefits are paid directly to the designated beneficiary.
Unlike other insurance policy types, term life insurance policies offer limited flexibility. Additionally, they do not create any residual or cash value. When the term of a term life policy expires, the policy just ceases to exist-it has no additional valu ..
Waiver Of Premium Rider
It may be wise to add a waiver of premium rider to your 5 year term life insurance policy. If you should become disabled, anytime after 6 months of disability, the life insurance company will take over the payment of your premiums for you, even if it is for the rest of your life. Think about it for a moment. Do you realize that people become temporarily disabled an average of about 5 times during their lifetimes. If you become disabled for at least 6 months with most companies they will pay your 5 year term life insurance premium for you. Now isn't that amazing.
Accidental Death Benefit Or Double Indemnity Rider
20 Year Term Life Insurance
One of the most popular life insurance policies is the 20 year term life insurance policy. The purchaser of the policy usually pays a level premium for the first 10 years. In some cases the premiums remain level, and at the same rate, for the entire 20 year period, however most companies increase the premiums starting in year 11 and they remain level for the balance of the 20 year term. This type of policy earns no cash values and there, therefore, are no dividends.
This type of life insurance policy may be totally or partially converted to a permanent policy at any time during it s lifetim ..
The famous double indemnity rider can also be attached to your policy. If you should die in an accident the life insurance company will pay to your beneficiary twice the face amount. Let us suppose you bought a $500,000 5 year term policy with one unit of accidental death benefit for each $1,000 of your policy and you died in an accident. The life insurance company would pay $1,000,000 to your family. That would be just beautiful, wouldn't it.
About the Author: For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net" target="_blank"> http://www.lifeinsurancehub.net
Source: http://www.isnare.com Donald LusanThe 5 Year Term Life Insurance Policy Or Rider
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