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Term Life Insurance Guide. Page 2

There are different types of term life insurance. First is the Level Term insurance where the

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What are the most common optional extras available on life insurance policies?: When considering the purchase of a life insurance policy you are almost certainly going to be offered additional extras that maybe added to the plan. The following three are the most common: -
Are there any fees or extra costs to pay?: If you are purchasing life insurance through our product partner, Life Policies Direct, then there will are no fees or other costs to pay
Laws and Life Insurance: The following Questions represent the legal aspects of Life Insurance we think you will be most interested in. The information is not definitive nor is it exhaustive but simply an introduction into the legalities involved.
UK Life Insurance and Laws in the European Union: All Life Insurance policies sold by UK based Life Companies cannot be sold to residents in other EU countries.

insurer is supposed to pay a fixed amount of premium for upto 20 years. Second is the Annual renewable term insurance that provides you with an option of renewing your policy regularly but at increasing premium rates. It is one of the simplest forms of policy with a term period of one year and is quite cost-effective too. The third kind is Decreasing Term where you can encounter a gradually diminishing death benefit. It can be beneficial for the insurer and his family when he retires from the job.

Term life insurance is the first choice of doctors, engineers and other professionals. For instance doctors who wish to set up their own clinics and do not incur good funds in first few ( secured loans ) years, prefer to take term life insurance policy. Since term life insurance can be purchased in large amounts for a significantly small initial premium, it is becoming all the more viable option. Moreover term life insurance is one of the most affordable ways to purchase a death benefit on coverage per premium per dollar basis.

However if you are willing to buy a term life insurance for a long-term risk, there are several points to be borne in mind. To begin with, if you already have a whole life policy then a term life insurance can meet your mortgage payments so that your family is not pressurized by the mortgage after you die. Also remember that in the annual renewable ( personal loans ) policy the insurance company might not renew the policy if your health starts to decline. This can be avoided by opting for a guaranteed renewable policy. But the premiums of this guaranteed policy will increase each time you renew the policy. You can also go for convertible term insurance where you convert the policy to permanent coverage.