Term Life Insurance Article

Choosing the Right Life Insurance after 50

Life insurance is becoming one of life?s little necessities. There are times, however, when choosing the right life insurance policy can be a difficult and confusing issue. This is especially true as one approaches and passes the 50 year mark. There are different types and several different styles of life insurance available. The following is an explanation of the different types and styles of life insurance available to help you make an informed decision. Insurance comes in two principle types, term and whole life. A term life insurance policy is valid for a specified period of time. During that time (the term), if the owner dies, his beneficiary will receive the entire amount of the policy, no matter how much it is. Of course, the value in pounds and the actual value of the policy may be very different and further apart than they were when the policy was issued.

A whole life policy is one that has lower monthly premiums and starts out with a limited benefit that grows over time as the premiums paid in grow. After a specified amount of time, the policy reaches its full value. This type of policy is actually viewed as an asset and can be borrowed against once it reaches its cash value.

Within these two types, there are several styles of policies. For example, in the term life policy type, one can choose from level term, decreasing term, increasing term, renewable term, and family income benefit. The first three are fairly simple to explain. Level term means that the premium amount and the benefit payable by the policy remain constant while the policy is in force. Decreasing term means that the monthly premium amount and the payable benefit of the policy get smaller as the term of the policy elapses. With an increasing term policy, the premium and the value of the policy are adjusted upward during the term of the policy to correct for inflation and maintain the same relative value of the policy. A renewable term simply means that the policy owner may renew for an additional term without having to take a physical examination at the end of the first term. Family benefit policies pay the family of the policy owner a monthly stipend throughout the rest of the term of the policy rather than a single lump sum.

Whole life policies may be selected from either standard basis or maximum basis. The differences lie in how soon the policy is paid out and in the amount of premiums paid per month per unit of coverage. Maximum basis policies have a consistently higher coverage level for the amount of the premiums. Premiums are normally increased following periodic reviews as the person ages. Standard basis policies are more likely to maintain a level benefit and premium until the policy is paid out. With all of these different insurances available, it can be quite difficult to choose the right life insurance coverage for you, especially after you reach age 50.

We hope that these explanations will make it easier to make an informed choice when shopping for life insurance coverage.

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