Question:
I live in Des Monies, Iowa and am looking into purchasing my first Life Insurance Policy. A No-Exam Life Insurance policy to be specific. I have heard that their are different types of Term Life Insurance. What are the differences?
Regards,
Phillip
Answer:
Phillip,
Term insurance basically comes served in two ways decreasing term and level term. Most of the policies bought today are Level Term Life Insurance. The types “level” and “decreasing” equate to the death benefit amount during the term of the policy. A Level Term policy pays the same benefit amount if death occurs at any point during the term. Decreasing Level Term policy decreases over the term of the policy so the face amount is drastically reduced.
Some examples of term periods are:
- 5 year renewable term
- 10 year term
- 15 year term
- 20 year term
- 25 year term
- 30 year term
- Term to a specific age i.e. 65.
I Hope this helps. Remember You can obtain Fast free Comparative quotes from Insurance companies in the Des Moines area by entering your zip code above. Happy shopping!
Author