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10 Year Term Life Insurance In All It's Glory
By: Donald Lusan
If you are looking for inexpensive life insurance may be the 10 year term life
insurance policy would fit your need perfectly. This is life insurance in its
simplest form. The policy contains a guaranteed death benefit from the outset
and a guaranteed level premium. After the initial 10 years some life insurance
companies allow you to renew the policy for an additional 10 years at an
increased premium. This 10 year term policy provides you with ample insurance
for small outlay over a fairly short period of time.
Policy Death Benefit
If you are the proud owner of a 10 year term life insurance policy. If you
should die within 10 years of your ownership of this policy the full face amount
is paid to your beneficiary, either in a lump sum or in the form of a monthly
income. The monthly income may take one of several different income options. You
may choose to take a life income with no certain period. After the beneficiary
begins receiving the income if s/he should die suddenly that would be the end of
the income. No one would get anything more from that 10 year life insurance
policy. It does not matter if the income is paid only for one month. There are
other options that would assure you, however, that would assure your
beneficiaries more of a pay out.
You could choose to pay them a life income with a 10 or 20 year certain. This
would guarantee that the income is paid for 10 or 20 years respectively. You
could choose a fixed period option which would guarantee that the income is paid
out for a fixed period, example 20 years or you could use the interest option,
which would keep your principal in tact and pay only interest to beneficiaries
for a specific period of years. At the end of this period the principal would be
paid.
Term Insurance Conversion Privelege
Most term insurance policies have built in a conversion privelege. The 10 year
term life insurance policy is no exception. This is because term insurance is
temporary insurance and people usually have a permanent for life insurance. You
can convert your policy usually to any permanent policy within a specific period
of time. Some companies limit your conversion period to 8 years, whereas others
may allow the policy owner the full 10 years.
Available Riders To Your Policy
There are certain riders that you can add to your 10 year term life insurance
policy which would tremendously increase it's value to yourself and your
beneficiaries. You may add the waiver of premium disability rider. If you should
become disabled, anytime after 6 months of disability, the life insurance
company will pay your premiums for you even if it is for the entire duration of
the policy. Now, isn't that just great?
Another rider that you can add is the accidental death benefit rider. This is
sometimes referred as the double indemnity rider. If you should die in an
accident the life insurance company will pay double the death benefit to your
beneficiaries.
Minimums And Maximums
There are certain minimum and maximum amounts of 10 year term life insurance
that insurance companies will be prepared to issue on an applicants life. This
may vary by age and medical history. Some companies may be prepared to issue
between $20,000 and $1,000,000, others may start at 100,000 and go as high as
$10,000,000 or $20,000,000.
Living Benefit Riders
The aids virus brought about a fairly new idea which many life insurance
companies have adopted. Because of a tremendous need for additional cash
terminally ill people may sell their policy to investors for a percentage of its
value. As an alternative you can add a rider to your policy which would allow
you to withdraw a portion of your death benefit during your lifetime. This is
called a living benefit rider. It would serve to ease the pressure on the
terminally ill and their families.
Spouse And Child Term Riders
Many insurance companies offer the opportunity for you to add a comparatively
small term life insurance rider on the life of your spouse and children. These
riders are usually 5 year term or 10 year term riders which work out to be less
expensive than had the policies been bought separately.
About the Author:
For more than 40 years Donald has been known for his extensive knowledge of the
life insurance business. He has represented some of the largest and best life
insurance companies in the United States as well as Canada. His advice is
invaluable. Donald's website is: http://www.lifeinsurancehub.net
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