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Term Life Insurance Comparison And Term Life Insurance Reviews Made Easy

Term Life Insurance Calculator Helps People Compare Term Life Insurance Plans

By Mike Heuer

When looking for a good deal on a term life insurance plan, the Internet and sites like this make it easy to shop and do a term life insurance comparison among several companies to ensure the best deal is obtained.

There are many kinds of term life insurance and term life companies underwriting coverages. The most basic type is a level term life plan that has a set level of coverage from periods usually ranging between 10 years and 30 years and them simply expires if the named insured outlived the period for which coverage is provided. The named insured is the person whose life is insured by the policy, and that person might be the policyholder, a spouse, family member or a business partner.

Level term life plans never adjust the premium amount to be paid and are among the most affordable life insurance plans sold. Many insurance experts consider them to be the purest form of life insurance sold due to the fact they provide coverage for a period of time and then end if no death benefit has been paid. They do not grow cash value, unlike their whole life insurance counterparts, and rates for term life plans are at their lowest level in many years.

Another type of term life insurance plan is a decreasing term life insurance policy, which has a gradually reducing death benefit as well as monthly premium that gets lower as time goes by. Such policies are best used when needing to protect a home mortgage or similar financial obligation that lessens over time. A policy might start out with a $300,000 death benefit to cover the cost of a mortgage on a new home, but as that home mortgage is paid down, the death benefit and premium is reduced as well to reflect the lesser need for coverage over time.

Most life insurers also sell convertible term life insurance plans that can be converted into whole life insurance if the need arises. Premiums remain level if the policy is not converted into a whole life policy. But if it is converted, the premiums will go up a great deal and generally will be higher than if taking out a whole life insurance plan from the outset. Because whole life insurance plans have nearly guaranteed death benefits and must grow in cash value over time, when converting a term life plan to whole life, the premiums go up a great deal more to make up for the cash value that has not accrued.

A return of premium term life plan also might be offered by life insurers, and those plans provide a death benefit for a period of time and then will return much of the premiums paid if the insured party outlives the policy term. Premiums for such term life plans are higher than for level term life insurance but still are less than what might be required for a comparable whole life insurance plan.

No matter which type of term life is needed, you consumers can do a term life insurance comparison and save a great deal when using this site and others like it.