Some Facts On 20 Year Term Life Insurance Policies

2007-03-08 10:33:40

( Insurance )



Term life ins policies are the cheapest form of life insurance you can purchase. With a 20 year term life insurance you pay a fixed premium for the first 10 years after which the premiums may increase after this period. A 20 year term life insurance only provides you with life insurance protection: it does not have a cash build up, nor does it provide for any dividends, unlike other types of life insurance policies. If you decide to change your 20 year term life insurance policy into another life policy that builds up in cash value, this can be done without providing any further documentation.

A 20 year term life insurance policy can be used to pay for any outstanding debts, save yourself from any financial problems, or for other purposes in the event of death.

Most 20 year term life ins policies will not have any value if you are still living when the policy reaches its 20th year, nor will a death benefit be paid out to your beneficiaries. You will however have the option of either converting your 20 year term insurance policy into a permanent life insurance policy, or renew it for a certain period of time. You can renew your fixed term life insurance policy annually, but the premiums will most likely increase each year.

Upon the time of your death a term life ins pays the face value of your policy as death benefit to your beneficiaries. Your beneficiaries will not be liable to pay for any federal income taxes from the amount that they will receive.

Different insurance companies provide different term life insurance rates; therefore, it is recommended that you shop around, obtain different term life insurance quotes and compare the different term life insurance rates with a number of life insurance companies before you make a final decision.

Ensure that when you purchase your term life ins that you obtain a policy that can be renewed.

There are some fixed term ins policies that can be sold with a fixed premium over the life of the policy: it may help you save money in the long run.

Lastly, ensure that the insurance company you choose is financially sound, so that your beneficiaries do not experience any difficulties when they need to obtain the death benefit.


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