What is term life insurance ?

There are two different types of life insurance, term life insurance and permanent life insurance.

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What is the difference between a Life Insurance Broker and a Life Insurance Company?: A Life Insurance Company is the organisation that actually writes your policy and covers the policy risk. It is also their name that appears on your policy documents and it is their duty to make any payouts if you make a claim.
If my life insurance policy is “Rated”, what does this mean?: If your policy is “rated” it means that the insurance company believes you represent an above average risk of a claim.
What is Mortgage Life Insurance?: Mortgage Life Insurance is also commonly known as Mortgage Protection Insurance.
Will my medical history affect my life insurance premium?: Yes it will. When an Life company decides how much to charge you, it works out the statistical chances of you dieing within the term of the proposed policy

Term life insurance is the easier of the two plans. This plan supplies you with death protection for a pre-determined amount of time, anywhere from one to 30 years. If you happen to die while paying on this type of policy your beneficiary will be paid the amount of money you specified when purchasing the policy. If at the end of the term you are still living your death protection coverage will cease unless of course you renew the policy. You can purchase this policy on a minimum budget and it is particularly perfect for providing coverage while your children are still in the home or while paying off a mortgage or other large loans.

This plan is merely a "quick fix." It is similar to leasing a vehicle. You pay a lower cost for the privilege of driving the car knowing you will return it after a short period of time. However, just like when leasing a vehicle there is an option to buy. If you are purchasing ( mortgages ) term life insurance because you need protection now but can't afford the higher payments of permanent protection in most cases you can switch your plan over to permanent protection when your situation changes (be sure to verify this before purchasing any policy). You can also look at term life insurance as an efficient means of protecting your family while using your remaining finances for savings or other investments.

Although this type of coverage is less expensive than permanent life insurance ( loans ) your premiums will increase at renewal periods as you grow older. Normally at renewal periods you will also be required to obtain a physical in order to qualify for the lowest rates.

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