Term Life Insurance

Do I need life insurance? Are you married, have a life partner, children , a mortgage, car loan, other debt? Then yes you must get life insurance. There are a lot of competing types of life insurance policies - which one should I buy? In 99 cases out of 100 , I say get a term life insurance policy with a contract term as long as you can find. Shop online, compare apples and apples, select a reputable company and write the contract as soon as you can. Without that cover you are flying low and dangerously. Your loved ones look to you for security and peace of mind. This is a way to provide replacement for lost income in the event of your premature death.

Term life insurance is cheaper than whole life or cash value life insurance. It's a no frills type of cover, usually easy to understand and easy to get comparative quotes for online. The simple structure of a term life policy is that you pay a premium for a stated value of insurance on your life. If you die, your loved ones are paid in a lump sum. No muss, no fuss.The two primary categories of term life insurance policies are decreasing term and level term.

Decreasing term life insurance reduces the amount insured over time in line with the decrease in your mortgage obligation. Covering a major debt like a mortgage is what decreasing term is designed to do.

Level term life insurance policies are more expensive than level term policies but are still relatively inexpensive. The level term spreads out the premium over the life of the policy and as your mortgage or other obligation balance decreases over time the amount available to your loved ones at your death increases. In other words, the total of the coverage remains the same during the life of the policy and the amount of the premium does not change.

Remember that you can structure term life any way you want. Your insurer or agent may squawk a little because some work is required on their part. You may find the right agent for by trial and error as you shop around for the coverage specifics that you want. You're in the driver's seat. You need the cover, they want the sale.

Because of it's flexibility, simplicity and low relative cost the term life insurance policy is, in my opinion, the best solution for 99% of people who are coming in to the life insurance market. The complexity of cash value policies makes them hard to evaluate since you are dealing with both a protection element and an investment aspect simultaneously. The two are best separated to achieve the lowest cost result and to meet your requirements.