The Cheapest Life Insurance

2007-03-08 10:33:40

( Insurance )



The Cheapest Life Insurance Around
If you are looking for the cheapest life insurance available, term insurance is for you. Term insurance is a form of life insurance that protects you for a specific period, undertaking to pay a certain sum of money if death occurs within that period.

Term Insurance
Term insurance expires when the period of coverage is completed. Before this occurs, there is usually an option to renew the term insurance, allowing protection to continue. The normal period of coverage is one year, for a very low price. Term insurance is affordable because it does not entail any extra costs for evaluation by the company. It can be granted quickly and without need for medical check-ups. Since it entails little outlay from the companies offering it, term insurance can be granted for very low premiums, making it the cheapest life insurance that can ever be procured.

Benefits of Term Insurance
Term insurance is easy to purchase. It can be acquired in large numbers, so it is an ideal option for companies that wish to provide insurance coverage for their workers. It is also renewable on a yearly basis, allowing for a long period of coverage, if renewals are consistently availed of.

Limitations of Term Insurance
Term insurance does not usually provide coverage for anything other than death. In other words, death must occur for the proceeds of the insurance to be delivered. Whole life insurance, which covers you for your whole life, can be augmented with extra benefits receivable during your lifetime. Term insurance cannot be combined with savings, unlike whole life insurance policies, or endowments. Of course, whole life insurance and endowments are more expensive. Term insurance will only cover you for a limited period. Term insurance will not allow you to enter into life insurance settlements. This is because life insurance settlements require a person to have coverage that is certain to exist at the moment of death. Term insurance cannot guarantee this, as it is limited by a time period, and the number of renewals allowed is also limited.

Conclusion
All in all, term insurance is useful because it is affordable. It is definitely the cheapest life insurance available. However, it does not give additional living benefits or savings.


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