Term Policy Descriptions And Term Life Insurance Quotes

Getting term life insurance quotes online has become common practice with people in search of life insurance protection for their families and in many cases for their business. Term policies are the policies of choice in most instances because they are less costly and also because they are easier to understand. Most people request term life insurance quotes on the 10 year term policies or the 20 year term policies. These are very good policies to own but there are many other options to choose from which may better fit an individuals need...if they only knew about them. I am going to attempt to leave no stone unturned in my description of each type of policy. We will look at the following policies.

• Decreasing Term Life Insurance
• Yearly Renewable Term Life Insurance
• 5 Year Term Life Insurance
• 10 Year Term Life Insurance
• 15 Year Term Life Insurance
• 20 Year Term Life Insurance
• 25 Year Term Life Insurance
• 30 Year Term Life Insurance
• Return Of Premium Term Life Insurance

Here are the details. As this page is a fairly long one if you want to skip to the actual quotations click on the link after the first paragraph or at the end of the page to do so.

• Decreasing Term Life Insurance

Most well thinking people plan to own a home for themselves and their families. Pride of ownership is a very powerful thing but home ownership is much more than that. It means security for the ones we love. We want our spouses and children to know that regardless of what they will always have a home to come to each day. We buy homeowners insurance to protect this piece of property from fire, a possible hurricane or flood or any other natural disaster but we sometimes give insufficient thought to what would happen if we should die. Our incomes also die with us and if we have a mortgage we run the risk of losing the home... Decreasing term life insurance was specifically designed to take care of this eventuality. The face amount of the policy decreases with, or close to, the mortgage balance. Upon your death the mortgage is paid off and your family will own the house free and clear. Another great feature is that it is very inexpensive insurance. If you own a home you should take the time to examine several term life insurance quotes on this policy...in order to get the lowest premium.

• Yearly Renewable Term Life Insurance

You may have in mind to do something special for your teenage grandchild like paying for his or her college education or you may have an outstanding loan that you don't want to leave for someone else to pay. You should request term life insurance quotes on yearly renewable term life insurance as this policy could come in handy to take care of these things upon your death.

Yearly renewable term is a one year level death benefit policy which is renewable each year at a higher premium. The premium charged is based on the cost to protect a person at a given age for a given amount of insurance. The actuaries can determine before hand how many people at any age are likely to die in a particular year. They take this into consideration when calculating premiums...

There is a minimal premium load in order to ensure that the insurance company does not lose money. Because the premium increases each year it should be purchased only for short term needs. In latter years the cost can be prohibitive. Get term life insurance quotes for this policy if you have a short term insurance need.

• 5 Year Term Life Insurance

You would use this policy for needs similar to those of the yearly renewable term policy. You would use it to cover outstanding short term loans or to guarantee the fulfillment of a short term commitment. The premium for this policy is a little higher than that of the initial premium of the yearly renewable term policy but it remains level for the entire 5 year period...

What the actuaries have done here is to average out the cost for insurance over the five years and added a minimal premium load for the protection of the company. The death benefit remains level for the duration. You should examine term life insurance quotes for the 5 year term policy and compare it with the yearly renewable term...you should find that quite interesting.

• 10 Year Term Life Insurance

Just about every life insurance company will give you term life insurance quotes. This policy is among the top for which quotes are requested. You may be aware by now that term insurance is temporary insurance. The time for which you can keep the policy is limited. Many people intend, when able, to convert their term policy to a permanent policy like universal life insurance or variable universal life insurance You will find the 10 year term policy is quite inexpensive and it provides the owners a reasonable period of time to convert the policy...10 years.

The premiums are usually guaranteed level for the ten year period and so is the death benefit. Some life insurance companies start out with a lower than usual premium which is guaranteed for the first 5 years and is then increased to a higher level for the second 5 years. I suggest you get term life insurance quotes on the policy with the level premium. The death benefit remains level for the life of the policy.




• 15 Year Term Life Insurance

One of the often ignored term life insurance policies is the 15 Year term policy. It does fulfill a worthy need though. Let us suppose you have a 10 year old child and you want to guarantee his or her security until age 25. You are concerned not only about everyday needs but also the cost of a college education. The 15 year term policy might fit the bill as this premium is also quite inexpensive.

You should look at term life insurance quotes for the 15 year term policy. The death benefit remains level for the duration and so does the premium.

• 20 Year Term Life Insurance

When you take the time to examine term life insurance quotes you just should not ignore the 20 year term policy...especially if you are a young person with a family or if you have just started out in business. If you were to ask a friend what type of life insurance policy he or she has you would probably be told a 20 year term policy...

The reasons may be quite obvious to you. If you buy the policy to protect your new family 20 years is a reasonable to initially consider. If you own a business and you are using the policy to fund a buy sell agreement or for key employee insurance again 20 years is a reasonable period of time to look ahead.

The premiums are reasonably inexpensive and are guaranteed to remain level for the 20 year period. The death benefit is also guaranteed to remain level. You definitely should get term life insurance quotes on the 20 year term policy.

• 25 Year Term Life Insurance

Because term insurance is usually considered temporary insurance the policies described above were considered sufficient an offering by the life insurance companies for a very long time. I guess it occurred to them that a person just getting married may want to consider a policy that lasts long enough to see their children through college. The 25 year term life policy would be good for such a situation. The businessman may want to make 25 year projections. His life insurance needs may also be covered by a 25 year term policy.

Upon reviewing your term life insurance quotes you will notice that the premiums are a little more costly than the 20 year term policy but it may well be worth it to you. The death benefit is guaranteed to remain level for the life of the policy.

• 30 Year Term Life Insurance

When you look at 30 year term it may come to mind that this term policy is almost as long lasting as a permanent life insurance policy. Think of it this way. If you are age 30 or 35 when you buy the policy you would have guaranteed insurance until you get to age 60 or 65. By then your children will likely be all grown and on their own doing their own thing. You should consider also that you need to maintain some insurance to cover your last expenses upon your death...

Even though you may have completely paid for the house and your spouse may have his or her own pension the additional money from a life insurance policy would still be welcome. It may be used to give a grandchild a head start...may be a college fund. Bear in mind that because of inflation the premium will be considered negligible at that time so it would be wise to keep the policy. So if you bought a 30 year term policy 30 years is not too long a period of time. When examining term life insurance quotes you should look at this policy.

The premiums are surprisingly inexpensive and this policy also maintains a guaranteed level death benefit.

• Return Of Premium Term Life Insurance

Because the public seems quite taken by the idea of owning a term life insurance policy life insurance companies have recently introduced a policy called a return of premium term life insurance policy. The premiums are higher than the other term policies for the same period of time but at the end of the term period it is all returned to the owner of the policy if he or she does not die...

The death benefit is level for the duration. You may check out term life insurance quotes on this policy but in my humble opinion it is not a good investment. It would be better to put your money in a policy like universal life insurance where you are allowed to determine how much of your premium goes toward saving and how much to life insurance protection.

Why The Yearly Renewable Term Insurance Premiums Increase

The yearly renewable term insurance policy, sometimes referred to as the increasing premium term insurance policy, needs some explanation. I think of this policy as a pressure policy if you intend to keep it for more than one year. Here is why I feel this way. When you buy the yearly renewable term insurance policy the premium you are quoted is for you at the given year that you request the quote. At this same time next year you will pay a premium for a person in your same exact situation but one year older. The following year the premium increases again as you will be paying a premium for a person two years older. On and on it goes...

Why the constant premium increase. The fact is when you buy a yearly renewable term insurance policy you are buying a one year term policy. There is no extra premium load in this policy. You are paying the premium that anyone in the type of health situation would pay. Let me explain...

All life insurance companies employ actuaries who take into consideration all possible variables and have the ability to calculate very accurately how many people at a given age, say age 25, will die in a particular year. Because they know this they can spread the risk and charge a premium accordingly. Yearly renewable term insurance is pure insurance with no loads; thus the additional premium the following year. Let us compare that with a 5 year term policy...

With the 5 year level term policy the premium is loaded up front. The actuaries have calculated the premiums for 5 years and spread the risk cost over that period...thus a level premium.

I don't usually recommend this policy as people tend to forget what the policy is all about and when they see the premium increase they get scared and attempt to cancel the policy. That is why I look at the yearly renewable term insurance policy as a pressure policy. I recommend a 5 year level term policy or a 10 year level term policy for people who are strapped for cash...instead of a yearly renewable term insurance policy.

Learn How Life Insurance Works And Then Get Your Life Insurance Quotes

You will find many places on this page where with a click you can obtain your life insurance quotes. There are people who are quite knowledgeable about how life insurance policies work. Such people are welcome to go ahead and request the quotes needed to purchase your life insurance. To those who want some information before taking action I say read on as there is a wealth of detail on life insurance not only on this page but on many of the pages on this site. I sincerely believe you should take a few minutes to really understand how life insurance really works. Before you get your life insurance quotes you will certainly want to know a little about...

Decreasing Term Life Insurance

What is this type of life insurance all about? Why would one buy decreasing term life insurance or any type of insurance for that matter? How much does it cost? How long would you keep it?

People who buy decreasing term life insurance usually have a great need for life insurance coverage at the present time but expect their need to decrease over time. If you purchased a house, for example, and you are carrying a mortgage, you know that the balance owed to the bank will decrease over time. If you want to be assured that your family gets the house with no debt upon your death then it would be wise to buy a dirt cheap decreasing term life insurance policy after you get your life insurance quotes. The face amount of this policy decreases in a fairly uniform manner over the life of the policy. The premium remains level. It never increases.

Increasing Premium Life Insurance

The increasing premium life insurance policy or the yearly renewable term life insurance policy is one you will also find interesting. There are certain things you need to know before requesting your life insurance quotes. The face amount of the policy remains level for the duration of the policy. The premiums increase every year. Even though your premiums start out very low the annual increase would make this policy very expensive in the long run. If you have a short term need for life insurance this is the policy to buy.

5 Year Term Insurance

The 5 year level term life insurance is also a policy bought for short term needs. If you have an outstanding loan or other financial commitment which you don't want to leave for someone else to pay then the 5 year term life insurance policy may be what you are looking for. The premium are very cheap and are guaranteed to remain level for the entire 5 year period. the death benefit is also guaranteed to remain level for the lifetime of the policy. This policy can be converted to a permanent life insurance policy at any time even if you are in bad health. Check this one out when requesting your life insurance quotes if you have a short term need for life insurance.

10 Year Term Insurance

The 10 year term insurance policy is still considered short term even though it can be kept for 10 years. People buy this policy for family protection, when money is tight, with the intention to convert the policy when they find themselves in a better financial situation. You will want to see this one when looking at your life insurance quotes. The death benefit is level from the outset and remains that way for the life of the policy. The premium is also guaranteed level. Business people also use this policy for the short term when money is tight. When requesting your life insurance quotes look at the 10 year term policy..

20 Year Term Insurance

A level premium for 20 years is one of the important features of this policy. The face amount is also guaranteed level. The 20 year term insurance policy can also be converted to permanent life insurance during the life of the policy even if ill health should beset you. As this policy is used for family situations as well as for business life insurance purposes special attention should be given to the 20 year term insurance when requesting your life insurance quotes. If you don't get quotes on the others make sure you do on this one and on the next...

30 Year Term Life Insurance

This policy has come a long way. From an overpriced policy to one of the most popular and competitive policies around this 30 year term life insurance policy is worth looking at. The death benefit is guaranteed level and so are the premiums. This policy is used in similar situations as the 20 year term. When you get your life insurance quotes I believe you will like this one.

How To Use Mortgage Term Life Insurance

Why should one buy mortgage term life insurance? The answer to that question is pretty obvious to most people but just in case there is anyone who doesn't know let us look at the what this policy provides. The intent of the designers of mortgage term life insurance was to create a policy that would be very inexpensive and at the same time would provide sufficient death benefit to pay off the mortgage in the event of the death of a breadwinner.

Life insurance was designed with the protection of the family first and foremost in the minds of it's creators. I believe it was fraternities that first explored the idea because they saw the difficulties that families experienced when a wage earning parent died. They figured that if a group of people got together and contributed to a fund over a period of time that money could be used, at minimum, to cover burial cost of the deceased and much pressure would be taken off the shoulders of the surviving family. At some point later someone came up with the idea to have mortgages paid off in the event of the death of a breadwinner. Let us look at how mortgage life insurance works and in particular mortgage term life insurance.

The Premium

As the name mortgage term life insurance implies this is very inexpensive life insurance. Term is the cheapest type of life insurance. This is close to the purest type of term insurance that exists. The premium of this policy remains level throughout. The mechanics are best illustrated by detailing an example...

Let us suppose you bought a house for $200,000. You have good credit and a good job so you decide to make a down payment of $40,000...20%. You owe $160,000 which you intend to pay off over a 20 year period. The amount you pay each month will depend on the rate of interest the bank charges but for the sake of this illustration that is beside the point.

In the initial years the majority of your payment is going to interest. As the years go by, and the principal decreases, a larger portion of your payment actually goes to reduce the amount owed to the bank or mortgage company.

In the initial years the life insurance company is bearing greater risk. The natural thought is that you should be paying a higher premium for your policy at the beginning. Not so. What the actuaries have done is to calculate the cost for the risk the insurance company is bearing each year for the 20 year period. They charge you an average, thereby allowing for a level premium over the 20 year period. Calculating the premium is a little more complex than that but, in a nutshell, that is how it works.

The Death Benefit

Bear in mind that your mortgage term life insurance policy was intended to pay off your mortgage in the event of your death. That is exactly what it will do. The death benefit of the policy decreases each year; thus the popular name for this policy... decreasing term insurance. The amount paid by the insurance company upon the death of the insured is equal to, or close to, the amount owed to the bank or mortgage company...

Let us use the same $160,000 mortgage as an example. If the insured died within the first year the amount paid would be equal to the amount owed at that time...$160,000. If the homeowner died in the tenth year the amount paid by the insurance company would also be equal to the amount owed but that amount at that time would be much less. I guess something close to $100,000. You would need to look at mortgage tables, and consider the interest rate, to arrive at an accurate figure...

The beauty of the whole thing is that the survivors will have a house free and clear.

Term Insurance Or Permanent - Two Policies Which Are Quite Different

Does the "term insurance or permanent insurance" debate still rage? Have people concluded which is best? It is the opinion of this author that there really is no contest. Term insurance and permanent insurance perform in different ways. They both have a death benefit that is paid to the heirs on the death of the insured. This can be paid in the form of an income or in a lump sum. You can add the waiver of premium rider to either type of insurance but that is about where the similarities cease. Term insurance or permanent...which do you prefer?

The rise in popularity of term life insurance in recent years has caused the insurance industry to really look at themselves. They have been forced by the people who really count, the consumer, to re-examine their policies. This has brought about some valuable restructuring of the life insurance policies themselves. Life insurance companies have made existing policies better and have created new types of life insurance policies. The term insurance or permanent debate has certainly served to educate the public on life insurance matters. People know which policy they prefer.

Term Life Insurance includes policies like:

• 5 Year Term

  This policy has a level premium as well as a level death benefit. It is the least costly of the level term policies but lasts only 5 years.

• 10 Year Term

  This is also quite inexpensive and has a level death benefit for 10 years as well as a level premium.

• 15 Year Term

  This is a little more costly than the previous 2 but it fulfills the needs of people who desire insurance for 15 years. It has a level death benefit as well as a level premium.

• 20 Year Term

  This can be considered a giant compared to other term policies. This one seems to fit most situations. It has a level premium in most cases and a level death benefit.

• 25 Year Term

  This one is not too well known simply because it is not promoted as much as the others. This is quite similar to the 20 year term policy except that it has 5 years on the 20 year term and is a little more costly.

• 30 Year Term

  This could very well have been designed to put up a good showing in the term insurance or permanent debate...30 years is a long time. Most policies are designed with a level death benefit as well as a level premium.

These are the permanent policies:

• Universal Life

  Universal life insurance is really a term policy with a savings plan attached. Some of them work pretty well.

• Whole Life

  This is the most complete type of life insurance policy you can buy. The details will amaze you. You accumulate cash values in the policy itself and you may earn a dividend each year depending on the company's performance. I say may because dividends are not guaranteed.

• Variable Life

  This is a whole life policy with an investment attached. It works well for some.

Each of the policies mentioned are done a bit different by the varying life insurance companies. There are also modified versions especially of the whole life policy.

In my opinion people have concluded which type of policy they want. Term insurance or permanent...isn't it great that we have a choice?

Estate Taxes Have Been Repealed But...

Estate Taxes and life insurance. It used to be that if a person with any semblance of wealth should die the Federal Government would step in a take a hefty chunk of the estate for taxes. In order to avoid devastating such estates the knowledgeable people would buy life insurance in the amount of the anticipated tax bill. This money would be used to pay the taxes assessed by the Federal Government.

The estate tax law allowed for a deduction of $1,000,000 and the balance of your estate is taxed at the rate of 55%. This law has been repealed which has resulted in some people living under the assumption that they no longer need the life insurance policy that would be used to pay the amount assessed at death any more. If they consulted their tax attorney or a knowledgeable accountant or life insurance agent they would realize that this assumption is far from the truth...

What the law actually does is to gradually reduce the percentage of estate taxes you would be required to pay by 10% by the year 2009 if your estate is at the top level...from 55% to 45%. It also increases the amount of your estate exempt from these taxes to 3.5 million dollars by the year 2010. In 2010 there will be no estate taxes but the law will revert to what it was originally by 2011...

If you therefore should die in any year other than 2010, and you have a large estate, Federal Taxes will be assessed and will be required to be paid. Bear in mind that the Government does not wait for it's money so a life insurance policy is still needed to pay this bill. Life insurance is the most cost effective way to pay amounts due.

During the years when less money will be assessed by the Federal Government a higher Capital Gains tax will be taken from the heirs as the law stands at the present time. In other words these people will immediately be thrown into a higher tax bracket than they were in before.

Furthermore, many people are not aware that some States have an estate tax law. There goes another portion of your estate...though the amount is usually smaller than the Federal Tax.

Get A free Life Insurance Quote Online

It has become common practice to get free life insurance quotes on the Internet and to buy your life insurance right there and then in some cases. This has been going on for a while now but everyone seems to be getting involved now. As people tend to get free life insurance quotes the life insurance companies have been forced to jump on the band wagon...even the big ones. The customer really calls the shots.

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Some have argued that the life insurance agent will eventually become extinct. This may be so but not in the near future. If you know how much life insurance you need you can go to your computer, get your free life insurance quotes and, in some cases, apply for your insurance online. If you need a Capital Needs Analysis done you will likely need an agent...

Qualified life insurance agents are still needed for "pensions and profit sharing" cases or for group life or health policies. If you have a fairly large estate and you want to know how much estate taxes you would need to pay if you died within a specified period of time you may need the assistance of a qualified life insurance agent...

In most other situations you can request you free life insurance quote online. Many companies will then send you an agent if you should so choose. Some companies, even the bigger and better ones, do allow you to make your purchase online.

It used to be that you could only get term life insurance online. These companies offered the 5 year term, the 10 year term, the 15 year term, the 20 year term, the 25 year term and the 30 year term. Now you can get free life insurance quotes on just about any term life insurance policy as well as some permanent life insurance policies. Here are brief descriptions of some of them.

• Decreasing Term

  The premium remains level throughout but the death benefit is less each year. This policy is usually used as a mortgage protection policy.

• Yearly Renewable Term

  The premium increases every year but the death benefit remains level for the entire period.

• Level Term Policies

  The death benefit on these policies remain level throughout and so do the premiums. The level term policies offered by most life insurance companies include the 5 year term, 10 year term, 15 year term, 20 year term, 25 year term and 30 year term...

  Some companies offer term to age 65, age 80, age 85, age 90 and even one that you can keep up to age 95 but the premiums usually increase after a reasonable period of time. Request free life insurance quotes on the ones that grab your interest and you will easily be able to decide which on to buy.

• Whole Life

  In recent years there has been a renewed interest in the whole life policy and the modified whole life policies as the premiums are much lower than they used to be. These policies have cash values and in most cases earn dividends . Dividends are not guaranteed.

  These policies can usually be kept until age 100. The face amount remains level throughout and so does the premium. I would get a free life insurance quote for whole life if I were in the market for new insurance.

• Policy Riders

  When looking at your free life insurance quote it may serve you well to examine the cost of some of the riders offered. You could add the waiver of premium rider. If you become disabled the life insurance company will pay the premiums for you for as long as you are disabled, even if it is for the rest of your life. In order for the rider to kick in though you must be disabled for a minimum of 6 months...some companies take over premium payment after 4 months. The premiums for this rider are very affordable.

  Another rider you can get a free life insurance quote for is the accidental death benefit rider...the famous double indemnity rider. If you should die in an accident the life insurance company will pay twice the death benefit to your family. The cost for this is also minimal.