"Life Insurance"
Term Life Insurance Explained
Note: The word “premium” is an insurance term that indicates the money a policyholder pays for insurance protection. Term life insurance provides a death benefit only, meaning the policy does not accumulate cash value. The premiums are typically level for a specified amount of years but the premiums can increase every year in some cases. The level term periods offered are usually 10, 15, 20, 25, and 30 years. In some cases you may continue coverage past the level term period specified in the policy, but the premiums increase substantially once the term period expires. The longer the guarantee period, the more expensive the premium. This is logical if you think about it because the insurance company faces a greater risk of paying a death claim the older a policyholder gets. For example, the odds of a 40 year-old man dying in the next 10 years are much less than that same 40 year-old man dying in the next 30 years. Once the policy is issued, the policy cannot be canceled nor premiums increased within the specified level term period of the policy. This is true regardless of any change in health that a policyholder might experience.
Serious Medical Condition?
Unfortunately many people only realize the need for life insurance after their health has deteriorated significantly or they have been diagnosed with a serious condition like cancer or heart disease. In most cases, traditional life insurance is no longer an option as insurance company guidelines will not allow issuing a policy. Very few insurance agents know how to help a client that has a need for life insurance but unfortunately also has a serious health condition.
Most people do not realize that it is possible to get life insurance even while being treated for
Common Policy Term Riders
A rider is an extra benefit that is added to a policy in addition to the basic death benefit. Some riders are built-in, or come with the regular policy without charge. Others require additional premium.
Nearly all modern term policies have a rider called the Accelerated Death Benefit. This rider is typically added to the policy at no extra charge and is designed to pay an portion of the death benefit before you die. The “catch” is that you must have a verified medical diagnosis indicating you have less than 12 months to live.
A Professional Agent vs Internet
Finding a good insurance agent is difficult. That is not because insurance agents are difficult to find. Just google “insurance agent” or “life insurance quote” and see how many hits you receive! The fact is, most agents stay in the industry for a short period of time, or do their work as a second job for extra income. Others don’t want to bother with “small cases.”
An agent that develops a basic client relationship first, meaning actually taking the time to understand your particular situation and